Which statement is true about allocation of charges?

Which statement is true about allocation of charges?

• A. The charge from replication transactions and mandatorily convertible securities is allocated 50% to R1 and 50% to R2.
• B. All charges go to R1.
• C. All charges go to R2.
• D. Allocation is 60% to R1 and 40% to R2.

Answer: (A)