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Business, 20.04.2020 22:26 maggie123456751

Old Economy Traders opened an account to short-sell 1,550 shares of Internet Dreams at $74 per share. The initial margin requirement was 52%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $74 to $81, and the stock has paid a dividend of $4 per share.

Required:
a. What is the remaining margin in the account?
b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?
c. What is the rate of return on the investment?

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Old Economy Traders opened an account to short-sell 1,550 shares of Internet Dreams at $74 per share...
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