Question: D e Trader opens a brokerage account and purchases 3 0 0 shares of Internet Dreams at $ 4 0 per share. She borrows $
De Trader opens a brokerage account and purchases shares of Internet Dreams at $ per share.
She borrows $ from her broker to help pay for the purchase. The inferest rate on the loan is
a What is the margin in Des account when she first purchases the stock?
b If the share price falls to $ per share by the end of the year, what is the remaining margin
in her account?
c If the maintenance margin requirement is will she receive a margin call?
d What is the rate of return on her investment?
Old Economy Traders opened an account to shortsell shares of Internet Dreams from the
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