Purchasers and Sellers of Futures Are Generally Required to Deposit

question 100

Multiple Choice

Purchasers and sellers of futures are generally required to deposit an initial margin in the range of ___________ with the exchange's clearinghouse to reduce credit risk.

• A)3 to 6 percent
• B)3 to 6 dollars
• C)10 to 15 percent
• D)10 to 15 dollars
• E)none of the above.

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Definitions:

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the company.

Dividends

A distribution of a portion of a company's earnings to its shareholders, usually determined by the board of directors.

Operating Activities

Cash flows directly related to the production and delivery of a company's goods and services.