What Has Happened to Cause a $250 Loss to Be

question 76

Multiple Choice

What has happened to cause a $250 loss to be marked to the margin account of a futures contract buyer?

• A) The commodity decreased in value on that day.
• B) The commodity increased in value on that day.
• C) The commodity decreased in value by $250 over the contract's life.
• D)The commodity increased in value by $250 over the contract's life.

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Definitions:

Promising Young Companies

Emerging businesses that show potential for significant growth and success in their industry.

Mezzanine Financing

A hybrid form of capital typically used in late-stage financing composed of debt and equity, ranking between senior debt and equity in terms of claim on assets.

Principle Amount

The original sum of money borrowed in a loan or the initial amount of investment before interest or profit.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing the residual value to shareholders after debts and liabilities have been settled.