Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams from the previous problem. 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. A. What is the remainning margin in the account?
B. If the maintenance margin requirement is 30 percent, will Old Economy receive a margin call?
C. What is the rate of return on the investment?

A. 38%

B. NO

C. -150%

Explanation:

A.Calculation for What is the remaining margin in the account

Remaining margin=(1,000 shares*$40 per share*50%) /[(1,000 shares*$50 per share )+ ($2 per share*1,000)]

Remaining margin=$20,000/($50,000+$2,000)

Remaining margin=$20,000/$52,000

Remaining margin=0.38*100

Remaining margin=38%

Therefore the remaining margin in the account will be 38%

B. In a situation where the maintenance margin requirement is 30 percent, Old Economy will NOT receive a margin call reason been that based on the above Calculation the margin is 38% which means that it is abovethe maintenance margin requirement of 30%.

C. Calculation for What is the rate of return on the investment

Rate of return=[(1,000 shares*$40 per share)-(1,000 shares*$50 per share )] -(1,000 shares*$40 per share*50%) ÷(1,000 shares*$40 per share*50%)

Rate of return=($40,000-$50,000) -$20,000 ÷ $20,000

Rate of return = (-$10,000 -$20,000)/$20,000

Rate of return =-$30,000/$20,000

Rate of return = -1.5*100

Rate of return = -150%

Therefore rate of return on the investment will be -150%

among other factors, composers started writing dynamic markings in their scores because "new instruments allowed for more dynamic ranges and contrast."

dynamics allude to the loudness or softness of music. dynamics offer an approach to demonstrate articulation in sheet music. they to drive the enthusiastic substance of music through volume and force. maybe you could alter both the volume and the shading profundity on your screen at the same time. we can likewise think about the force side of elements as the quality of a note. a few notes are intended to be played delicately and gently, while others are intended to be played all the more firmly.  

some dynamics markings have a letter 'm,' which remains for mezzo, signifying 'medium.' so a mezzo piano unique stamping resembles this (mp) and intends to play medium calm, while a mezzo specialty dynamic resembles this (mf) and intends to play medium loud.