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Old Economy Traders opened an account to short sell 2,500 shares
of Internet Dreams at $70 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 $70 to $80, and the stock
has paid a dividend of $3.50 per share.
a. What is the remaining margin in the account? (Round your
answer to the nearest whole number.)
b. If the maintenance margin requirement is 30%,...
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Old Economy Traders opened an account to short-sell 1,000 shares
of Internet Dreams at $75 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 $75 to $89.50, and the
stock has paid a dividend of $11.00 per share.
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...
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ld Economy Traders opened an account to short sell 2,300 shares
of Internet Dreams at $66 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 $66 to $70, and the stock
has paid a dividend of $2.50 per share.
a. What is the remaining margin in the account?
(Round your answer to the nearest whole
number.)
Remaining margin----? (45.52 is wrong) ???
b. If...
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Old Economy Traders opened an account to short sell 3,000 shares
of Internet Dreams at $81 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 $81 to $90, and the stock
has paid a dividend of $3.00 per share.
a. What is the remaining margin in the account?
b. What is the rate of return on the investment?
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ART I Introduction 7. Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. "The initial margin requirement was 50%. (The margin account pays no inter- est.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share. a. What is the remaining margin in the account? If the maintenance margin requirement is 30%, will Old Economy receive...
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Old Economy Traders opened an account to short-sell 1,000 shares of Disney from the previous question. The initial margin requirement was 50%. A year later, the price of Disney has risen from $40 to $50. 3. 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?
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Dée Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $20 per share. She borrows $2,500 from her broker to help pay for the purchase. The interest rate on the loan is 7%. a. What is the margin in Dée's account when she first purchases the stock? Margin b. If the share price falls to $10 per share by the end of the year, what is the remaining margin in her account? (Round your answer to...
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Dée Trader opens a brokerage account, and purchases 390 shares
of Internet Dreams at $72 per share. She borrows $3,610 from her
broker to help pay for the purchase (Ignore transaction costs). The
interest rate on the loan is 8%.
Requirement 1:
What is the margin (aka, $ of equity) in Dée's account when she
first purchases the stock? (Omit the "$" sign in your
response.)
Margin
$
Requirement 2:
(a)
If the share price falls to $62 per share...
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Saved Help Se Problem 3-14 DRK, Inc., has just sold 60,000 shares in an initial public offering. The underwriter's explicit fees were $36,000. The offering price for the shares was $68, but immediately upon issue, the share price jumped to $70.00 a. What is the total cost to DRK of the equity issue? Total cost b. Is the entire cost of the underwriting a source of profit to the underwriters? Yes No 1 of 5 !!! Next > Co search...
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Dée trailer opens a brokerage account and purchases 100 Shares
of Internet dreams that $60 per share. She borrows $2000 from her
broker to help pay for the purchase. The interest rate on the loan
is 10% what is the margin in his account when she first purchase
the stock? If the share price falls to $50 per share by the end of
the year what is the remaining margin in her account? (Round your
answer to two decimal places.)...
ART I Introduction 7. Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. "The initial margin requirement was 50%. (The margin account pays no inter- est.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share. a. What is the remaining margin in the account? If the maintenance margin requirement is 30%, will Old Economy receive...
Old Economy Traders opened an account to short-sell 1,000 shares of Disney from the previous question. The initial margin requirement was 50%. A year later, the price of Disney has risen from $40 to $50. 3. 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?
Dée Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $20 per share. She borrows $2,500 from her broker to help pay for the purchase. The interest rate on the loan is 7%. a. What is the margin in Dée's account when she first purchases the stock? Margin b. If the share price falls to $10 per share by the end of the year, what is the remaining margin in her account? (Round your answer to...
Saved Help Se Problem 3-14 DRK, Inc., has just sold 60,000 shares in an initial public offering. The underwriter's explicit fees were $36,000. The offering price for the shares was $68, but immediately upon issue, the share price jumped to $70.00 a. What is the total cost to DRK of the equity issue? Total cost b. Is the entire cost of the underwriting a source of profit to the underwriters? Yes No 1 of 5 !!! Next > Co search...
Dée trailer opens a brokerage account and purchases 100 Shares
of Internet dreams that $60 per share. She borrows $2000 from her
broker to help pay for the purchase. The interest rate on the loan
is 10% what is the margin in his account when she first purchase
the stock? If the share price falls to $50 per share by the end of
the year what is the remaining margin in her account? (Round your
answer to two decimal places.)...