The Margin Requirement Will Be Lower Than the Standard Requirement

question 23

Multiple Choice

The margin requirement will be lower than the standard requirement on a stock index futures contract when:

• A)the stock market is declining.
• B)the futures are used to hedge a portfolio.
• C)the investor is establishing a speculative position.
• D)None of the above

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Definitions:

Period of Two Years

A specific duration or time frame that spans exactly twenty-four months or two calendar years.

Part Performance

An equitable doctrine that allows a contract, typically not in writing, to be enforced if one party has taken significant steps to perform their part of the agreement.

Interest in Land

Legal rights or investments in real estate that involve ownership or other financial claims on the property.

Verbal Evidence

Evidence presented in the form of words, spoken or written, as opposed to physical evidence or demonstrations, used in legal proceedings.