The Minimum Dollar Amount Required by an Investor When Taking

question 36

Multiple Choice

The minimum dollar amount required by an investor when taking a position in a futures contract is called the

• A) initial margin
• B) maintenance margin
• C) margin account
• D) none of the above

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Definitions:

Long-Term Loss

A loss realized from the sale of an asset held for more than one year, which can offset long-term capital gains.

Short-Term Loss

A financial loss realized on the sale of an asset held for one year or less, used to offset capital gains and reduce taxable income.

Single Category Average

A measure that represents the average value within a specific, singular category of data.

Investment Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.