The margin requirement will be lower than the standard requirement on a stock index futures contract when:
A)the stock market is declining.
B)the futures are used to hedge a portfolio.
C)the investor is establishing a speculative position.
D)None of the above

Question

Quizplus · Accepted Answer

If the investor can prove he is hedging a long position, the margin requirement will be less.

The Margin Requirement Will Be Lower Than the Standard Requirement