Which One of the Following Describes the Typical Initial Margin

question 93

Multiple Choice

Which one of the following describes the typical initial margin requirements for a futures contract?

• A)2% to 5% of contract value on short positions only
• B)2% to 5% of contract value on both long and short positions
• C)4% to 8% of contract value on long positions only
• D)4% to 8% of contract value on short positions only
• E)5% to 15% of contract value on both long and short positions

---

Definitions:

Nominal Wages

Wages paid to employees that have not been adjusted for inflation, representing the amount of money earned in current dollars.

Inflation Rate

The rate at which the overall price level of goods and services increases, thereby reducing the buying power.

Nominal Wage Rates

The amount of money paid to an employee by an employer in current prices, without adjusting for inflation.

Real Wages

Wages or salaries adjusted for inflation, reflecting the true purchasing power of income.