Suppose you have $$7,000$ in your account. You want to buy $100$ shares of GreenWave Inc at $$100.$ You can finance

the remaining $$3,000$ through a loan from your broker with $10\%$ interest $($annual$).$ The initial margin required is

$50\%$ and the maintenance margin is $25\%.$

At what price level would you receive a margin call from the broker?

What is your return if you close your position a year later $-$ when the GreenWave Inc is traded at $$110?$

You get margin call if price declines to $$42\mathrm{.}86$; and your return would be $10\%$ if you close your position $$110.$

You get margin call if price declines to $$42\mathrm{.}86$; and your return would be $15\%$ if you close your position at $$110.$

You get margin call if price declines to $$40\mathrm{.}00$; and your return would be $15\%$ if you close your $$110.$

You get margin call if price declines to $$40\mathrm{.}00$; and your return would be $10\%$ if you close your position at $$110.$