Youve borrowed $30,000 on margin to buy shares in a listed company, 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.

a. Will you receive a margin call?

b. At what price will you receive a margin call?

c. If you do not want to invest more money, how many shares would you have to sell to get back to the initial margin debt level if the share price suddenly drops to 28?