The Sources of Quantitative Standards Include

question 85

Multiple Choice

The sources of quantitative standards include

• A) historical experience.
• B) engineering studies.
• C) input from operating personnel.
• D) historical experience, engineering studies, and input from operating personnel.
• E) None of these.

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Definitions:

Margin Requirements

The minimum amount of equity that must be maintained in a margin account to hold an investment position, set by brokerage firms or regulatory bodies.

Option Positions

Refers to the holdings an investor has in options contracts, which could be either calls (betting the stock will rise) or puts (betting the stock will fall).

In The Money

A term used in options trading to describe an option that would generate profit if exercised immediately, because the underlying asset's price is favorable to the option's strike price.

Margin Call

A call from a broker to an investor to add more money or securities in order to safeguard against potential losses.