An investor buys 16000 shares of ANACAM in ISE at the current price of $3.20 per share. He decides to buy on margin showing 16000 shares as collateral since he believes that the shares will go up in a short period of time. The brokerage firm charges 25% for credit. If the initial margin limit is 50% and maintenance margin is 35%.

A) What will be his net profit if ANACAM shares go to $5.5 per share in 15 days. How much additional profit he gains by buying at margin?

B)If the price falls to $2.2 per share in 25 days; does he receive a margin call? If so, how much must he pay in cash?