What is the margin in Dée account

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Reference no: EM132935917

Problem - Trader opens a brokerage account and purchases 200 shares of Internet Dreams at $44 per share. She borrows $4,150 from her broker to help pay for the purchase. The interest rate on the loan is 10%.

a. What is the margin in Dée's account when she first purchases the stock?

b. If the share price falls to $34 per share by the end of the year, what is the remaining margin in her account?

c. If the maintenance margin requirement is 30%, will she receive a margin call?

-Yes

-No

d. What is the rate of return on her investment?

Reference no: EM132935917

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