Q590
Deposit that are required in futures contract and is considered as guarantee that conditions of contracts would be fulfilled is classified as
A.
initial margin
AnswerB.
futures margin
C.
conditional margin
D.
non-conditional margin
Answer: Option A
Solution
Answer: Option A
Solution:
Deposit that are required in futures contract and is considered as guarantee that conditions of contracts would be fulfilled is classified as initial margin. Initial margin is the percent of a purchase price that must be paid with cash when using a margin account.