The Initial Margin Required for Futures Trading

question 45

Multiple Choice

The initial margin required for futures trading:

• A) is only put up by the seller.
• B) is only put up by the buyer.
• C) is put up by the party initiating the transaction, either the buyer or the seller.
• D) must be put up by both the buyer and the seller.

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Definitions:

Routes

Predefined paths or courses taken for the distribution of goods from suppliers to customers.

Origins

The initial starting points or sources from which something arises, such as the beginnings of a supply chain or product development process.

Destinations

The end points or locations to which something is sent or where something is intended to go, often used in the context of transportation, logistics, or travel.

Optimal Solution

The best possible outcome or decision that maximizes or minimizes the desired objective within given constraints.