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questions with multiple parts please help. Check my work 1 Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $85
questions with multiple parts please help.
Check my work 1 Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $85 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 $85 to $95.50, and the stock has paid a dividend of $13.00 per share. pints a. What is the remaining margin in the account? eBook Remaining margin Print References b-1. What is the margin on the short position? (Round your answer to 2 decimal places.) Short margin % b-2. If the maintenance margin requirement is 30%, will Old Economy receive a margin call? O Yes O NO 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.) Rate of return % Hw2 Saved Help Save & Exit Submit Check my work 2 Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $130. 10 points Limit Buy Orders Price Shares $129.75 400 129.70 700 129.65 400 129.60 200 128.65 500 Limit Sell Orders Price Shares $129.80 150 129.85 150 129.90 300 129.95 150 eBook Print a. If a market buy order for 150 shares comes in, at what price will it be filled? (Round your answer to 2 decimal places.) Best price References b. At what price would the next market buy order be filled? (Round your answer to 2 decimal places.) Next best price c. If you were a security dealer, would you want to increase or decrease your inventory of this stock? O Increase O Decrease
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