You are bullish on Deutsche Telecom stock. The current market price is 50 per share, and you have 5,000 to invest. You borrow additional 5,000 from your broker at an interest rate of 8% per year and invest 10,000 in the stock.

a) What will be your rate of return if DT stock goes up by 10% during the next year? No dividends are paid. b) How far does the price of DT stock have to fall for you to get a margin call if maintenance margin is 30%.

Shouldn't the b questions answer be (7500-100p)/100p=30% Margin call when P = 57.69 or higher