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You short sell 1000 shares of Internet Dreams. The initial margin requirement is 50%. A year later, the price has risen up from $40 to

You short sell 1000 shares of Internet Dreams. The initial margin requirement is 50%. A year later, the price has risen up from $40 to $50 and the stock has paid a dividend of $3.

a) What is the remaining margin on the account?

b) If the maintenance margin requirement is 30%, will you receive a margin call?

c) What is the rate of return on this investment?

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