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please solve it when you are compeletely sure about the solution Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at
please solve it when you are compeletely sure about the solution
Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $55 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 $55 to $62.50, and the stock has paid a dividend of $2.20 per share. What is the remaining margin in the account? Remaining margin $ What is the margin on the short position? (Round your answer to 2 decimal places.) Short margin % If the maintenance margin requirement is 30%, will Old Economy receive a margin call? Yes No 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 %Step by Step Solution
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