Business, 20.02.2020 23:05, barkahigh8089
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 shareWhat is the remaining margin in the account'? If the maintenance margin requirement is 30%, will Old Economy receive a margin call? What is the rate of return on the investment?
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Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams at $40 per share...
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