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Old Economy Traders opened an account to short sell 1000 shares of Internet Dreams at...

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Finance

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Old Economy Traders opened an account to short sell 1000 shares of Internet Dreams at $130 per share. The initiat margin requirement was 50% (The margin account pays no interest) A year later, the price of Internet Dreams has risen from $130 to $144.00, and the stock has paid a dividend of $22.00 per share. Required: a. What is the remaining margin in the account? Remaining margin 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? Yes 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 (38.67)

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