Margin Requirements on Long and Short Positions Are

question 90

Multiple Choice

Margin requirements on long and short positions are

• A) higher on shorts
• B) higher on longs
• C) rarely the same
• D) generally the same
• E) influenced by the customer's net worth

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Definitions:

Depreciation Rate

The rate at which an asset is depreciated over a specified period, often expressed as a percentage of its original cost.

Revaluation

The process of adjusting the book value of an asset or liability to reflect its current fair market value.

Prospective Depreciation

Depreciation calculated from the current period forward, taking into account changes in asset value or estimated useful life.

Economic Benefits

Future returns or advantages from owning an asset or from a transaction.