The Level of Margining in a Futures Contract Takes as an Important

question 10

Multiple Choice

The level of margining in a futures contract takes as an important input

• A) The trading volume that underlies the contract.
• B) The credit quality of counterparties trading in the futures market.
• C) The volatility of the asset underlying the futures contract.
• D) The difference between the initial and maintenance margin in the futures.

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Definitions:

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A formal dance held for high school juniors, significant in American culture as a rite of passage for teenagers.

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