Old Economy Traders opened an account to short-sell 2,000 shares of Internet Dreams at $60...
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Old Economy Traders opened an account to short-sell 2,000 shares of Internet Dreams at $60 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 $60 to $70, and the stock has paid a dividend of $4.00 per share. a. What is the remaining margin in the account? (Round your answer to the nearest whole dollar) b. If the maintenance margin requirement is 30%, will Old Economy recelve a margin call? Yes No c. What is the rate of return on the investment? (Round your answer to 2 decimal places. Negotive volue should be indicated by o minus sign.)
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