You have borrowed $20,000 on margin to buy shares in Harley Davidson, which is now trading for $40 per share. Your account starts with an initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share.

What is your new margin percentage? Will you receive a margin call?

Exactly how low can the price of Disney shares fall before you receive a margin call?

Please show how you got your answer