With Regard to Futures Contracts, What Does the Word "Margin

question 1

Multiple Choice

With regard to futures contracts, what does the word "margin" mean?

• A)It is the amount of the money borrowed from the broker when you buy the contract.
• B)It is the maximum percentage that the price of the contract can change before it is marked to market.
• C)It is the maximum percentage that the price of the underlying asset can change before it is marked to market.
• D)It is a good-faith deposit made at the time of the contract's purchase or sale.

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