1. Suppose Jon Snow decides to buy 500 shares of Winterfell, Inc., a climate change research firm. The price of the stock is $60 per share at the time he buys the stock. Jon decides to borrow $10,000 from his broker to help pay for the purchase. The interest rate on the loan is 7%.

1. What is the margin in Jon Snows account when he initially purchases the stock? (5 Points)
2. Winterfell announces its statistical models for climate change are flawed and this news causes the stock price to plummet to $35 per share. What is the margin in Jon Snows account after this news is announced? Show your calculations. (5 Points)
3. If the maintenance margin requirement is 30%, will Jon receive a margin call? Show your calculations and explain. (5 Points)

4. Assuming he sells the Winterfell shares after the announcement in part (b), what rate of return does Jon Snow receive on his investment? Show your calculations. (5 Points)

5. How does borrowing money from the broker to buy the Winterfell stock affect Jon Snows rate of return? In other words, is he better off or worse off in terms of his rate of return from the investment because of borrowing? Show your calculations and explain. (5 Points)

Question doesn't give a time period for the interest rate so I'm assuming it will just be one month or 1