Dée trader opens a brokerage account and purchases 300 shares of internet dreams at $40 per share. she borrows $4,000 from her broker to pay for the purchase. the interest rate on the loan is 8%. (lo 3-4)
a. what is the margin in dée's account when she first purchases the stock?
b. if the share price falls to $30 per share by the end of the year, what is the remaining margin in her account? if the maintenance margin requirement is 30%, will she receive a margin call?
c. what is the rate of return on her investment?
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Dée trader opens a brokerage account and purchases 300 shares of internet dreams at $40 per share. s...
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