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Old Economy Traders opened an account to short-sell 500 shares of Internet Dreams at $30 per share. The initial margin requirement was 55%. A year
Old Economy Traders opened an account to short-sell 500 shares of Internet Dreams at $30 per share. The initial margin requirement was 55%. A year later, the price of Internet Dreams has fallen from $30 to $25, and the stock has paid a dividend of $2 per share. Whats the EQUITY (in dollar value) in the account? If the maintenance margin is 30%, will Old Economy receive a margin call?
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