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Old Economy Traders opened an account to short sell 2,200 shares of Internet Dreams at $64 per share. The initial margin requirement was 50%. (The
Old Economy Traders opened an account to short sell 2,200 shares of Internet Dreams at $64 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 $64 to $70, and the stock has paid a dividend of $2.00 per share. a. What is the remaining margin in the account? (Omit $ sign in your response.) Remaining margin $| b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call? Yes c. What is the rate of return on the investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return 0 %
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