Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $75 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 $75 to $89.50, and the stock has paid a dividend of $11.00 per share.

a. What is the remaining margin in the account?

Remaining margin            $

b-1. What is the margin on the short position? (Round your answer to 2 decimal places.)

Short margin             %

b-2. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?

 

Answer rating: 100% (QA)

Lets calculate each part step by step a To find the remaining margin in the account we first need to ... View the full answer