Question: just need the answer for question A and question B-1, please show work if possible really stuck. Old Economy Traders opened an account to short-sell
Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $40 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 $40 to $50, and the stock has paid a dividend of $2 per share Required: a. What is the remaining margin in the account? Remaining margin 1-1. What is the margin on the short position? Short margin 5-2 it the maintenance margin requirement is 30%, will Old Economy receive a margin call Yes O NO c. What is the rate of return on the investment? (Negative value should be indicated by a minus sign.) torem
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