Answer: 1.82.

## Explanation The leverage ratio is calculated as: **Leverage Ratio = 1 / Margin Requirement** Given: - Minimum margin requirement = 55% = 0.55 **Calculation:** Leverage Ratio = 1 / 0.55 = 1.8181... ≈ 1.82 **Why this is correct:** 1. **Margin requirement** represents the percentage of the total position value that must be contributed by the investor's own funds. 2. **Leverage ratio** measures how much total exposure an investor gets relative to their own capital. 3. With a 55% margin requirement, for every $1 of investor capital, they can control approximately $1.82 in total position value. **Verification:** - If an investor has $100 of their own capital and margin requirement is 55%: - Total position value = $100 / 0.55 = $181.82 - Leverage ratio = $181.82 / $100 = 1.8182 ≈ 1.82 **Why other options are incorrect:** - **A. 1.55**: This would be the inverse of a 64.5% margin requirement (1/1.55 ≈ 0.645) - **C. 2.22**: This would be the inverse of a 45% margin requirement (1/2.22 ≈ 0.45) This question tests understanding of margin requirements and leverage calculations in finance.

Author: LeetQuiz .