How leverage works (MODUL 5-15)

The correct answer is C.

In the case of a $100,000 position with 100:1 leverage, the customer would have been required to post a security deposit equal to 1% of the position value. In this case, the security deposit would have been $1,000 ($100,000 X .01). A 1,000 US dollar decline in the value of the position would have completely wiped out the security deposit.