Which One of the Following Describes the Typical Initial Margin

question 18

Multiple Choice

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

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

---

Definitions:

Sublet

The act of leasing out a rented property by the original tenant to a third party.

Liable

Legally responsible or obligated to make amends for actions, damages, or debts.

Possession

The state or fact of having ownership or control of something, often referring to tangible property.

Subtenancy

An arrangement where a tenant leases out a part or all of a leased property to another, creating a sublease.