The current market price of a stock is $100 per share. You put up $10,000 and borrow another $10,000 on margin at a rate of 8% and use the $20,000 to buy the stock.

A) What would your rate of return be if the stock went up 10% in the next year? Assume that there are no dividends.

B) How far could the stock price fall before you received a margin call if the maintenance margin level were 30%? Assume that the price drop is immediate.