You buy 700 shares of SUV at $70.63/share on 35% margin. You must deposit to margin...

You buy 700 shares of SUV at $70.63/share on 35% margin. You must deposit to margin _________

Your leverage on this investment is _________

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Expert Solution

Margin is the amount you need to keep in your trading account.

Margin = Total investment * margin %

= (700 * 70.63) * .35

= 49441 * .35

= 17304.35

Leverage = 1/ Margin

= 1/ .35

= 2.86

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Hope this answer your query.

Feel free to comment if you need further assistance. J

jeff jeffy answered 1 year ago

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