ilo

i lost 5 points, wanna know mistake, so solve

(12 points) Suppose that Intel is selling for $70 per share. You buy 500 shares using $20,000 of your own money, borrowing the remainder from your broker. The annual rate on the margin loan is 6%. i. How low can Intel's price fall before you get a margin call if the maintenance margin is 20%? Assume the price fall is immediate. my bortwoing is (soo x70)-20000 15000 % margin Soup -15ooo =.20 => 56(P-30) 3.20 5oop 505 P-30 -2-P => P.-28-30 => 0.88:30 => P: 37.5 What is your percentage return if Intel is selling for $80 one year later? R = 80-37.5 S = 1.13 % 37.5