1
answer
0
watching
144
views

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?

For unlimited access to Homework Help, a Homework+ subscription is required.

Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related questions

Weekly leaderboard

Start filling in the gaps now
Log in