Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams at $50 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 $50 to $55, and the stock has pad a dividend of $1 per share. What is the remaining margin in the account? $19,000 $15,000 $12,000 $18,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams at $50 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 $50 to $55, and the stock has paid
a dividend of $1 per share. What is the remaining margin in the account?
$19.000
$15,000
$12,000
$18,000
Transcribed Image Text:Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams at $50 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 $50 to $55, and the stock has paid a dividend of $1 per share. What is the remaining margin in the account? $19.000 $15,000 $12,000 $18,000
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