Vidyalelo
Management · Q572

International Finance and Treasury

Graduate and Post Graduate · Management · question 572

Q572

Margin which must be maintained as soon as futures contract takes place is classified as

A.
spot margin
B.
maintenance margin
Answer
C.
futures margin
D.
forwards margin

Answer: Option B

Solution

Answer: Option B
Solution:
Margin which must be maintained as soon as futures contract takes place is classified as maintenance margin. A maintenance margin is the minimum amount of equity that must be maintained in a margin account.