Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show work Oid Economy Traders opened an account to short-sell too0 shares of internet Dreams at $30 per share. The inital margin requirement was
please show work
Oid Economy Traders opened an account to short-sell too0 shares of internet Dreams at $30 per share. The inital margin requirement was 50K. (The margin account pors no interest) A year latec, the price of Internet Dreams has risen from $30 to $38.50. and the stock has paid a dividend of $2.40 per share. Pequired: a. What is the remaining margin in the account? b-1. What is the margin on the short position? (Round your answer to 2 decimat places.) b.2. If the maintenance margin requirement is 30%, will Oid Economy recetie 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.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started