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Question : Margin requirement =

Option 1: Current value of the security offered for loan – Value of loan granted

Option 2: The current value of the security offered for the loan + the Value of the loan granted

Option 3: The current value of the security offered for loan * Value of loan granted

 

Option 4: The current value of the security offered for the loan / Value of loan granted


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Current value of the security offered for loan – Value of loan granted


Solution : The correct answer is (a). Current value of the security offered for loan – Value of loan granted

The margin requirement is calculated by subtracting the value of the loan granted from the current value of the security offered for the loan. This calculation determines the amount of equity or collateral that the borrower must provide in relation to the loan amount.

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