A wealthy individual has established a trust and named you as the trustee. If you wish to establish an account that permits the trust to engage in margin transactions, which of the following statements regarding margin trading is TRUE?
A) It is permitted if the fiduciary shares in the profits or losses.
B) It is permitted if provided for in the underlying documentation.
C) It is not permitted.
D) It is permitted if the fiduciary observes the prudent investor rule.
Answer: B) It is permitted if provided for in the underlying documentation.