Suppose That a Futures Trader Has Deposited the Initial Margin

question 13

Multiple Choice

Suppose that a futures trader has deposited the initial margin of $2,000 in her brokerage account.The maintenance margin is 75 percent.The value of the account falls to $1,100.The account holder has to come up with a variation margin of:

• A) $300
• B) $400
• C) $500
• D) $900
• E) $1,100