You purchased 400 shares of XYZ common stock on margin at $20 per share. Assume the initial margin is 60% and the maintenance margin is 30%. You would get a margin call if the stock price is below . Assume the stock pays no dividend and ignore interest on margin.

$11.42

Explanation:

Firstly, we calculate the the buying cost of the shares. We were told that 40” shares were bought at a rate of $20 per one

The total amount spent buying is mathematically equal to = 400 * $20 = $8,000

Now since initial margin is 60%, the amount of personal money to used would be: 60% of $8,000 = 60/100 * 8,000 = $4,800. The amount borrowed will be 8.000 - 4800. = 5,200

Now we want to calculate the price at which there would be a margin call.

Mathematically;

Margin Call Price = Purchase Price x (1 - Initial margin) / (1 - Maintenance Margin) = 20 x (1 - 60%) / (1 - 30%) = $11.42

what are the options

explanation:

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'