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

question 16

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.
• E) It is the amount by which the contract is marked to market.

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Definitions:

Diastole

The phase of the heart cycle when the heart muscle relaxes and allows the chambers to fill with blood.

Ventricular Filling

The phase of the cardiac cycle in which the ventricles fill with blood, following diastole and before systole.

AV Valves

The atrioventricular valves, which include the mitral and tricuspid valves, control blood flow between the atria and ventricles in the heart.

Semilunar Valves

Heart valves located at the bases of the aorta and the pulmonary artery that prevent blood from flowing back into the ventricles.