Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $85 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 $85 to $95.50, and the stock has paid a dividend of $13.00 per share. Required: a. What is the remaining margin in the account? Remaining margin b-1. What is the margin on the short position? (Round your answer to 2 decimal places.) Short margin %

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 $85 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 $85 to $95.50, and the stock
has paid a dividend of $13.00 per share.
Required:
a. What is the remaining margin in the account?
Remaining margin
b-1. What is the margin on the short position? (Round your answer to 2 decimal places.)
Short margin
%
Transcribed Image Text:Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $85 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 $85 to $95.50, and the stock has paid a dividend of $13.00 per share. Required: a. What is the remaining margin in the account? Remaining margin b-1. What is the margin on the short position? (Round your answer to 2 decimal places.) Short margin %
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