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Old Economy Traders opened an account to short-sell 1,880 shares of Internet Dreams at $68 per share. The initial margin requirement was 61%. (The margin
Old Economy Traders opened an account to short-sell 1,880 shares of Internet Dreams at $68 per share. The initial margin requirement was 61%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $68 to $74, and the stock has paid a dividend of $4 per share. Required: (a) What is the remaining margin in the account? (Round your answer to the nearest dollar amount.Omit the "$" sign in your response.) Remaining margin $ (b) If the maintenance margin requirement is 38%, will Old Economy receive a margin call? (Click to select)
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