The Purchaser of a Futures Contract

question 44

Multiple Choice

The purchaser of a futures contract

• A) is required to obtain a margin loan equal in amount to the cost of the contract minus the cash down payment.
• B) is generally required to make a cash deposit of 10 to 20% of the contract price at the time the contract is entered.
• C) does not have to worry about margin calls since margin loans are not required.
• D) is affected by the daily procedure known as mark-to-the-market.

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Definitions:

Religious Discrimination

Unfair treatment of individuals or groups based on their religious beliefs or practices.

Right-to-Sue Letter

A document from an agency, such as the Equal Employment Opportunity Commission, giving a complainant the right to file a court lawsuit against their employer.

Private Plaintiff

An individual or private party who brings a lawsuit or legal action against another party, as opposed to actions brought by the government or public entities.

EEOC

Equal Employment Opportunity Commission, a U.S. federal agency that administers and enforces civil rights laws against workplace discrimination.