If the Purchaser of a Futures Contract Fails to Meet

question 76

Multiple Choice

If the purchaser of a futures contract fails to meet a margin call,

• A) his/her contract will be sold at the current market price.
• B) his/her contract will automatically be executed along with immediate delivery.
• C) their local broker can decide to waive the call.
• D) they will be given a 30-day grace period before payment is required.

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Definitions:

Spring

A season of the year following winter and preceding summer, characterized by rising temperatures and the budding of plants.

Contract Rescinded

The act of legally canceling a contract, returning all parties to their positions prior to the agreement.

Innocently Mistaken

A situation where a person is wrongly believed or judged without intentional fault.

Used Truck

A vehicle that has been previously owned and operated, and is available for purchase in the secondary market.