Question: Problem 2 (15 Points) Josh Next opened an account to short-sell 3,000 shares of Sun Spots Co.. The initial margin requirement is 50 percent. (The
Problem 2 (15 Points) Josh Next opened an account to short-sell 3,000 shares of Sun Spots Co.. The initial margin requirement is 50 percent. (The margin account pays no interest). A year later, the price of Sun Spots has risen from $45 to $50, and the stock has paid a dividend of $3 per share. a. What is the remaining margin in the account (in dollars and percentage)? b. If the maintenance margin requirement is 25 percent, will Josh Next receive a margin call? c. What is the rate of return on the investment
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