What is the remaining margin in the account

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Reference no: EM131819245

Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $35 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 $35 to $41.50, and the stock has paid a dividend of $4.40 per share.

a. What is the remaining margin in the account?

b. What is the margin on the short position? (Round your answer to 2 decimal places.)

c. What is the rate of return on the investment.

Reference no: EM131819245

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