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Business, 28.02.2020 00:48 arnold2619

Estimate the leverage you would offer to a client who wanted to borrow money to buy one SPY ETF if your firm requires the client to put up enough of their own money to cover 98% of one-day moves in the market. Leverage is the relative amounts of (i) the amount of asset the client can buy (i. e., the sum of the client’s money and your loan to the client), divided by (ii) the amount of money the client put up.

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