If the Purchaser of a Futures Contract Fails to Meet

question 76

Multiple Choice

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

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

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Definitions:

Tissue Damage

The physical injury or harm to body tissues resulting from various causes, such as trauma, infection, or exposure to toxic substances, leading to inflammation or dysfunction.

Cold Receptors

Sensory nerve endings that are responsive to decrease in temperature, found in the skin.

Warm Receptors

Sensory receptors in the skin that detect increases in temperature, contributing to the sensation of warmth.

Nociceptor

A sensory receptor that responds to damaging or potentially damaging stimuli by sending signals to the spinal cord and brain.