Vidyalelo
Management · Q791

International Finance and Treasury

Graduate and Post Graduate · Management · question 791

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
Answer
B.
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
No explanation is given for this question Let's Discuss on Board