Suppose that Intel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker.

a. What is the percentage increase in the net worth of your brokerage account, i.e., investment return, if the price of Intel immediately changes to: (i) $44; (ii) $36?

b. If the maintenance margin is 25%, how low can Intels price fall before you get a margin call?