Q791
In a derivative transaction, the term margin denotes to which one of the following?
A.
Cash or collateral provided by a customer to a broker to protect the broker from loss on a contract
AnswerB.
Cash or collateral provided by a broker to a customer to protect the customer from loss on contract
C.
A broker's request for more collateral to bring a customer's margin requirement to a premium margin level
D.
A customer's request for more collateral to bring a broker's margin requirement to a minimum standard level
Answer: Option A
Solution
Answer: Option A
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