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value: .1 points Old Economy Traders opened an account to short-sell 1 .000 shares of Internet Dreams at $40 per share. The initial margin requirement
value: .1 points Old Economy Traders opened an account to short-sell 1 .000 shares of Internet Dreams at $40 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 $40 to $50, and the stock has paid a dividend of $2 per share a. What is the remaining margin in the account? Remaining margin 8000 b-1. What is the margin on the short position? Short margin b-2. Ir the maintenance margin requirement is 30%, will Old Economy receive a margin call? 16% Yes O No c. What is the rate of return on the investment? (Negative value should be indicated by a minus sign.) Rate of return
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