Your analysis has indicated that the shares of Levis Riveting Co. are highly over-valued. To take advantage of this expectation, you decide to sell short 900 shares at $20 each. The initial margin for short sales in your brokerage account is set at 60% (i.e., 160% of the value of the short sale). The minimum margin requirement is 40%. The stock will pay no dividends during the period, and you will not remove any money from the account before making the offsetting transaction.

1. At what price would you face a margin call?
2. If the price is $24 at the end of the period, what is your margin ratio at that point?