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Suppose That a Futures Trader Has Deposited the Initial Margin

Question 13

Multiple Choice

Suppose that a futures trader has deposited the initial margin of $2,000 in her brokerage account.The maintenance margin is 75 percent.The value of the account falls to $1,100.The account holder has to come up with a variation margin of:


A) $300
B) $400
C) $500
D) $900
E) $1,100

Correct Answer:

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