Variation Margin Is Which of the Following

question 10

Multiple Choice

Variation margin is which of the following?

• A)margin deposited as a result of marking-to-market
• B)the difference in margin between hedger and speculator
• C)margin differences according to trading style
• D)margin set by the variability of a futures price
• E)none of the above

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Definitions:

Availability Bias

A cognitive bias where people overestimate the importance of information that is readily available to them.

Confirmation Error

A cognitive bias where individuals favor information that confirms their existing beliefs or hypotheses.

Representativeness Bias

A cognitive bias where individuals incorrectly assess the likelihood of an event based on how closely it resembles their stereotypes of a category.

Lack-of-participation Error

A common mistake in decision-making processes, where not all relevant parties are involved, leading to suboptimal outcomes.