When the Value of the Futures Contract Margin Account Falls

question 8

Multiple Choice

When the value of the futures contract margin account falls below the maintenance margin,________.

• A) no action is necessary by the investor
• B) there is a margin call
• C) there is a margin call at which point the account must be brought back up to the maintenance margin amount
• D) no money changes hands again until the expiration date

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Definitions:

Eczema

A group of medical conditions causing inflamed, itchy, cracked, and rough skin patches.

Diaper Dermatitis

A common form of inflamed skin (dermatitis) that looks like patches of inflamed skin on the buttocks, thighs, and genitals, caused by prolonged exposure to a dirty diaper.

Clubbing

A physical finding characterized by the bulging of the tissues at the base of the nails, often associated with chronic oxygen deprivation or lung disorders.

Anasarca

Severe and generalized edema with swelling and accumulation of fluid in the tissues.