Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $55...
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Accounting
Old Economy Traders opened an account to shortsell shares of Internet Dreams at $ per share. The initial margin requirement was The margin account pays no interest. A year later, the price of Internet Dreams has risen from $ to $ and the stock has paid a dividend of $ per share. Required: a What is the remaining margin in the account? b What is the margin on the short position? Round your answer to decimal places. b If the maintenance margin requirement is will Old Economy receive a margin call? c What is the rate of return on the investment? Negative value should be indicated by a minus sign. Round your answer to decimal places. 
Old Economy Traders opened an account to shortsell shares of Internet Dreams at $ per share. The initial margin
requirement was The margin account pays no interest. A year later, the price of Internet Dreams has risen from $ to $
and the stock has paid a dividend of $ per share.
Required:
a What is the remaining margin in the account?
b What is the margin on the short position? Round your answer to decimal places.
b If the maintenance margin requirement is will Old Economy receive a margin call?
c What is the rate of return on the investment? Negative value should be indicated by a minus sign. Round your answer to
decimal places.
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