There are 400 shares for each lot of Stock X, and the share price is currently at $40. You would buy 2 lots of Stock X, but you do not have sufficient money in purchasing 2 lots, and thus you open a margin account to do so. It is assumed that the initial margin requirement is 60%, the subsequent margin requirement is 45%, and you would borrow maximally.

(a) Calculate how much you will borrow in the margin account and how much you will pay initially. (8 marks)

(b) Discuss (with calculation) whether you would receive a margin call or not if the share price decreases to $30. (6 marks)

(c) Calculate the minimum share price that you would not receive a margin call. (8 marks)