Suppose Facebook is currently selling at $100 per share. You buy 500 shares using $25,000 of your own money, borrowing the remainder from your broker. The margin loan rate is 8% per year.

A) What is your initial margin position?

B) Assume Facebook sells for $110 at year end. What is your return % and your brokerage account margin %?

C) Assume Facebook sells for $90 at year end. What is your return % and your brokerage account margin %?

D) If the maintenance margin is 25%, how low can Facebook's price fall down before you get a margin call? Assume the broker will charge one year of interest.