Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $125 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 $125 to $137.00, and the stock has paid a dividend of $21.00 per share.
a. What is the remaining margin in the account?
b-1. What is the margin on the short position? (Round your answer to 2 decimal places.)
b-2. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $125 per share. The initial margin requirement was ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
In a market with an upward sloping supply curve and a downward sloping demand curve, when there is an excess supply, the actual price must be higher than the equilibrium price. the actual price must be lower than the equilibrium price.
Answers (1)
On a standard monopoly board, which square is diagonally opposite 'go'?
Answers (2)
During a certain year, the consumer price index increased from 120 to 132 and the purchasing power of a persons bank account increased by 4 percent. for that year, a. the nominal interest rate was 14 percent. b. the inflation rate was 9 percent. c.
Answers (1)
You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $85 initially, and then $130 per year in maintenance costs.
Answers (1)
Department A had 5,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period, 34,000 units of direct materials were added during the period, 31,000 units were completed during the period, and 2,000
Answers (1)
New Questions in Business
Assume your granny put $45,000 into a trust fund for you earning 5%. You cannot withdraw the money until it has doubled. How many years must you leave the money in the trust fund (before the original $45,000 has doubled) ? a. 10.24 b. 11.35 c. 12.
Answers (1)
In making a forward pass through a network, activities L, M, and P are immediate predecessors for activity T, which has an activity time of 7. The early start times for activities L, M, and P are 22, 17, and 27, respectively.
Answers (1)
Eastview Company uses a periodic LIFO inventory system, and has the following purchases and sales: January 1 150 units were purchased at $9 per unit. January 17 120 units were sold. January 20 160 units were purchased at $11 per unit.
Answers (1)
Which companies spend the most money on advertising? Business Insider maintains a list of the top-spending companies. In 2014, Procter & Gamble spent more than any other company, a whopping $5 billion. In second place was Comcast, which spent $3.
Answers (1)
An exchange for goods without the use of money is called inflation. a. True b. False
Answers (1)