If the Purchaser of a Futures Contract Fails to Meet

question 6

Multiple Choice

If the purchaser of a futures contract fails to meet a margin call,

• A) his/her contract will automatically be executed along with immediate delivery.
• B) their local broker can decide to waive the call.
• C) they will be given a 30- day grace period before payment is required.
• D) his/her contract will be sold at the current market price.

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Definitions:

Leaf Primordia

Young, undeveloped leaves that are in the earliest stages of growth, found in the buds of plants.

Apical Meristem

Regions of rapidly dividing cells in plants located at the tips of roots and shoots, responsible for primary growth and elongation.

Terminal Bud

Bud that develops at the apex of a shoot.

Rhizomes

Underground plant stems capable of producing the shoot and root systems of a new plant, contributing to asexual reproduction and the spread of the plant.