Old Economy Traders opened an account to short$-$sell $1,100$ shares of Internet Dreams at $$42$ per share. The initial margin requirement was $50\%.($The margin account pays no interest.$)$ A year later, the price of Internet Dreams has risen from $$42$ to $$53,$ and the stock has paid a dividend of $$2\mathrm{.}50$ per share.

Required:

a$.$ What is the remaining margin in the account?

b$.$ If the maintenance margin requirement is $30\%,$ will Old Economy receive a margin call?

c$.$ What is the rate of return on the short position $($treating the initial margin as the amount invested$)?$

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What is the remaining margin in the account?

Remaining margin