Answer: 1.82.

## Explanation The leverage ratio is calculated as the reciprocal of the margin requirement. **Formula:** \[ \text{Leverage Ratio} = \frac{1}{\text{Margin Requirement}} \] **Given:** - Minimum margin requirement = 55% = 0.55 **Calculation:** \[ \text{Leverage Ratio} = \frac{1}{0.55} = 1.81818... \] **Rounding:** - 1.81818... ≈ 1.82 **Why this is correct:** - When you have a 55% margin requirement, it means you need to put up 55% of the position's value as your own capital. - The remaining 45% is borrowed. - The leverage ratio represents how much total position you control relative to your equity. - With 55% equity, you control 100% of the position, so leverage = 100/55 = 1.818. **Verification:** - Option A (1.55) would correspond to a margin requirement of 1/1.55 ≈ 64.5% - Option C (2.22) would correspond to a margin requirement of 1/2.22 ≈ 45.0% Therefore, the maximum leverage ratio is closest to **1.82**.

Author: LeetQuiz .