Business, 06.04.2021 01:20 littlepotato10

Old Economy Traders opened an account to short sell 2,500 shares of Internet Dreams at $70 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 $70 to $80, and the stock has paid a dividend of $3.50 per share. a. What is the remaining margin in the account? (Round your answer to the nearest whole number.)
b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call? No Yes
c. What is the rate of return on the investment? (Round your answer to 2 decimal places. Negative value should be indicated by a minus sign.)

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Old Economy Traders opened an account to short sell 2,500 shares of Internet Dreams at $70 per share...

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