If the Price of a Futures Contract Increases, Then

question 78

Multiple Choice

If the price of a futures contract increases, then

• A)the exchange will collect the amount of the increase from the seller of the contract and transfer it to the account of the buyer of the contract.
• B)the exchange will collect the amount of the increase from the buyer of the contract and transfer it to the account of the seller of the contract.
• C)the exchange will collect the amount of the increase from both the buyer and the seller and place it in escrow until the delivery date.
• D)the additional funds will be required from either the buyer or the seller until the delivery date.

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