If You Are Told That A_a is 15%,a_b is 8

question 26

Multiple Choice

If you are told that a_a is 15%,a_b is 8% and a_ab is 0.012,that what will be the value of Q_ab?

• A)- 1
• B)1
• C)0
• D)None of the above

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Definitions:

Short 100 Shares

The process of selling 100 shares that are not currently owned, with the expectation of buying them back at a lower price for a profit.

Initial Margin

The minimum amount of funds required to open a position in the futures market, intended to cover potential losses.

Maintenance Margin

The minimum amount of capital that must be maintained in a margin account after a purchase or trade, to cover the risk of loss.

Margin Call

A requirement from a broker for an investor to add more cash or securities to their account to mitigate potential losses.