How leverage works (MODUL 5-10)

Quiz #3

If a forex dealer charges a 1% security deposit, how much will a speculator be required to post as a security deposit to trade an Australian dollar/US dollar spread if the speculator bought 1,250,000 Australian dollars at .7707 US dollars?

A. $7,707

B. $1,250

C. $9,634

D. $3,760