Response to the following questions:
1. Assume an investor buys 1000 shares at $5 per share, using a margin loan to finance 30% of the purchase. If the share price rises to $8, what is the investor's new position?
2. Jerri Kingston bought 1000 shares at $8 per share using a margin loan to finance 40% of the purchase. Given the lender's maximum loan to value ratio is 75%, how far does the share price have to drop before Jerri faces a margin call?
(Assume there are no other securities forming part of the margin loan.)