Conudera financial urmediary that has Xin bao capital. It has borrowed Lomes bank capital has no other lates The secrete mould Something happens that means the intermediary has to repay its loans to do so, it has to set it assets for less than their pertence they cacho, has forced to them a price 1 What is the lowest value of that would seep the firm ovne 1) where may have been imorto their derivatives holdings and something changed so they need to pay to the margin acowa. Opto PART 1: Consider a financial intermediary that has 5X in bank capital. It has borrowed L times its bank capital. What are the total liabilities of the intermediary? OLX OXUX XL PART 2. Consider a financial intermediary that has 5X in bank capital. It has borrowed L times its bank capital. It has no other liabilities. What are the total assets of the Intermediary? OX.LX XL OLX PART 2 Considera financial intermediary that is sx in bank capital, it has borrowed L times its bank capital it has no other labies The assets are highly liquid Something happens that means the intermediary has to repay its loans (9) To do so, it has to sell its assets for less than the expected value (since they are liquid)What could happen "forcuample, the loans" may have been implick in their derivatives holdings, and something changed so they need to pay into their margin accounts. The intermediary could increase L The intermediary could make a profit The intermediary could become insolvent The intermediary could increase its assets