The amount paid at the time a futures contract is sold
A) represents the maximum loss for the buyer of the contract.
B) represents the maximum profit for the buyer of the contract.
C) is the initial margin deposit.
D) is the total value of the goods being traded in the future.

Question

Quizplus · Accepted Answer

The amount paid at the time a futures contract is sold is the initial margin deposit, which is a fraction of the total value of the contract. This deposit is required to open a position and is not the total value of the goods or the maximum profit/loss.

The Amount Paid at the Time a Futures Contract Is