The Term Futures Margin Refers to

question 61

Multiple Choice

The term futures margin refers to

• A) the percent of potential margin for profit associated with a futures contract.
• B) the "good faith" money the purchaser puts down to ensure that the contract will be carried out.
• C) the interest-earning account associated with a futures contract.
• D) the number of contracts outstanding on a particular futures contract.

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Definitions:

Standard Deviation

A statistic that measures the amount of variation or dispersion of a set of values.

Dispersed

Spread over a wide area or among a large number of people.

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the number of values.

Average Score

The sum of all individual scores divided by the number of scores, often used as a measure of central tendency.