Suppose that your evil twin opened an account short sell 1000 sharesofIntemet Dreams from the previous problem. The initialmargin requirement was 50%(the margin account paysno interest). Ayear later, the prioeof Intermet Dreams has risen from $40 $50, and thestock has paid a dividend of $2/share.
a. What is remaining margin ($) in your evil twins account ?
b. If the maintenance margin requirement is30%, will your evil twin receive a margin call?
c. What is the rateof retun on your evil twin's investment?