Question 10. You are very impressed with Company A and have invested in its Stock. You want to invest more and start buying on a margin. The maintenance margin is 30% Your broker agreed to give you a 35 000kr loan, using your stocks as collateral. a) How large is your initial margin, in percent? b) What is your return on equity, in percent, if the price increases by 5%? c) If the stock starts to fall, at what price will you receive a margin call?

Position	500 shares
Price per share	175 kr
Debt	35 000kr