You've borrowed $20,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share. Assuming no dividends.

a. If there is no interest rates on the loan, what is your remaining margin after the price falls? Will you receive a margin call? b. If the interest rate on the margin loan is 10% per year, what is the margin call price in one year?