Small Margin Requirements for Futures Contracts Implies

question 29

Multiple Choice

Small margin requirements for futures contracts implies
1) the potential profit is magnified
2) the potential loss is magnified
3) the speculator's risk exposure is increased
4) the speculator's risk exposure is decreased​

• A)1 and 3
• B)1 and 4
• C)1, 2, and 3
• D)1, 2, and 4