I'm wondering if someone could direct me how to tackle this problem?
Assume that Bank A buys 150£ worth of government bonds with a leverage of 15
to 1, and targets a constant leverage. When the price of purchased securities fall to
145, the bank would
a) Buy securities worth 70£.
b) Sell securities worth 70£.
c) Buy securities worth 75£.
d) Sell securities worth 75£.
e) None of the above.
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Leverage, securities calculation watch
- Thread Starter
- 10-05-2014 17:33
- 14-05-2014 08:10
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