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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
In efficient financial markets, unregulated competitive bidding should bring about the most productive use of an asset and the price paid for that asset should reflect fair value based on its usefulness. In real estate, this is not always the case.
Answers (1)
Before the monkees were on television, which group did the television producers originally want, but could not afford?
Answers (1)
Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. In 2015, the LLC generates $80,000 of ordinary taxable income. Enercio withdrew $10,000 from the partnership during 2015.
Answers (2)
If managerial work is characterized by variety, fragmentation, and brevity, how do managers perform basic management functions such as planning, which would seem to require reflection and analysis?
Answers (1)
On september 1, 2018, fortune magazine sold 600 one-year subscriptions for $81 each. the total amount received was credited to deferred subscriptions revenue. what is the required adjusting entry at december 31, 2018?
Answers (1)
New Questions in Business
Gail's employer contributes $2,000 (5% of her $40,000 salary) to a qualified retirement plan for Gail. This pension plan is what kind of plan?
Answers (1)
Jennifer believes that the price of sugar is too low and that the price will rise within the next calendar quarter. If she wishes to trade based on her belief she should: Select one: a. Take a long position in the futures market. b.
Answers (1)
A firm has three different production facilities, all of which produce the same product ... While reviewing the firm's cost data, Jasmin, a manager, discovers that one of the plants has a higher average cost than the other plants and suggests
Answers (1)
Five jobs are waiting to be processed. Their processing times and due dates are given below. Using the shortestprocessing time dispatching rule, in which order should the jobs be processed?
Answers (1)
Acme Foods wants to make its chips saltier, but it doesn't want to spend more than it has to on salt. A sample of consumers are asked to compare its current chip (saltiness = 100) with saltier versions and to say whether the new version is saltier.
Answers (1)