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:

Fitness

A state of health and well-being that is achieved through a combination of physical exercise, proper nutrition, and sufficient rest.

Reproduce

The biological process by which new organisms are generated from parent organisms.

Reproductive Potential

The possible reproductive capacity or output of an organism or population, often considering factors like age and health.

Gender Differences

Variations in characteristics, behaviors, physical and psychological attributes between males and females.