Trader opens brokerage account and purchases shares

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Reference no: EM13875204

Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. a. What is the margin in Dée’s account when she first purchases the stock? (Omit the "$" sign in your response.) Margin $ b-1. If the share price falls to $30 per share by the end of the year, what is the remaining margin in her account? (Omit the "$" sign in your response.) Remaining margin $ b-2. If the maintenance margin requirement is 30%, will she receive a margin call? Yes No c. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 1 decimal place. Omit the "%" sign in your response.) Rate of return %

Reference no: EM13875204

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Trader opens brokerage account and purchases shares : 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 help pay for the purchase. The interest rate on the loan is 8%. a. What is the margin in Dée’s account when she f..

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