In Relation to Futures Markets,which of the Following Regarding Initial

question 3

Multiple Choice

In relation to futures markets,which of the following regarding initial margins is false?

• A) A futures trader is required to pay an initial margin to the clearinghouse.
• B) The initial margin will be higher for low market volatility.
• C) If the futures contract price drops below the minimum percentage, the initial margin will have to be increased.
• D) In order to top up an insufficient initial margin a maintenance margin call will be made.

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Definitions:

Inspiratory Reserve Volume

The additional volume of air that can be inhaled into the lungs beyond the normal tidal volume inhalation.

Expiratory Reserve Volume

The additional amount of air that can be forcibly exhaled after the completion of a normal, quiet expiration.

Warmer

An adjective describing an increase in temperature or a device used to raise the temperature of something.

Moisture

The presence of a liquid, especially water, often in trace amounts in the environment or substances.