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 $2.50 per share. a. What is the remaining margin in the account? (Round your answer to the nearest whole dollar.)

Remaining margin

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

multiple choice

• Yes

• No

c. What is the rate of return on the investment? (Round your answer to 2 decimal places. Negative value should be indicated by a minus sign.)

Rate of return

%