Suppose you bought $2000$ shares of BBC at $$60$ per share on margin today. The margin requirement is $70\%$ and the maintenance margin is $35\%.$ The annual interest rate on margin loan is $5\%$ and the brokerage cost is $1\%$ of value of stocks purchased.

Use the above information to answer questions $15-16.$

$15.$ Suppose a year has passed since you purchased the stocks. What is the critical price at which you will get a margin call?

a$.$ $$27\mathrm{.}69$

b$.$ $$27\mathrm{.}97$

c$.$ $$29\mathrm{.}37$

d$.$ $$30\mathrm{.}14$

e$.$ $$30\mathrm{.}35$

$16.$ If you close your margin position by selling all shares at $$65$ per share after a year, what rate of return would you make on your investment. Assume the brokerage cost of $1\%$ on sales of stocks.

a$.6\mathrm{.}48\%$

b$.6\mathrm{.}70\%$

c$.6\mathrm{.}82\%$

d$.7\mathrm{.}92\%$

e$.8\mathrm{.}33\%$