Question: D e Trader opens a brokerage account and purchases 4 0 0 shares of Internet Dreams at $ 2 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 interest rate on the loan is
Required:
What is the margin in Des account when she first purchases the stock?
If the share price falls to $ per share by the end of the year, what is the remaining margin in her account?
If the maintenance margin requirement is will she receive a margin call?
multiple choice
Yes
No
What is the rate of return on her investment?
Note: Negative value should be indicated by a minus sign. Round your answer to decimal places.
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