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amberfox707Lv1
28 Sep 2019
Old Economy Traders opened an account to short sell 3,000 sharesof Internet Dreams at $81 per share. The initial margin requirementwas 50%. (The margin account pays no interest.) A year later, theprice of Internet Dreams has risen from $81 to $90, and the stockhas paid a dividend of $3.00 per share.
a. What is the remaining margin in the account?
b. What is the rate of return on the investment?
Old Economy Traders opened an account to short sell 3,000 sharesof Internet Dreams at $81 per share. The initial margin requirementwas 50%. (The margin account pays no interest.) A year later, theprice of Internet Dreams has risen from $81 to $90, and the stockhas paid a dividend of $3.00 per share.
a. What is the remaining margin in the account?
b. What is the rate of return on the investment?
Sixta KovacekLv2
28 Sep 2019