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What is the remaining margin in the account

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Question - Old Economy Traders opened an account to short-sell 2,100 shares of Internet Dreams at $62 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 $62 to $70, and the stock has paid a dividend of $1.50 per share.

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?

Reference no: EM132977530

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