When a position is first taken in a futures contract, the investor must deposit a ________ dollar amount per contract as specified by the exchange. This amount, called ________, is required as a deposit for the contract.

Question

Quizplus · Accepted Answer

The correct answer is D) minimum; initial margin. When an investor first enters into a futures contract, they must deposit a minimum dollar amount per contract as specified by the exchange. This amount is known as the initial margin, and it serves as a deposit to open the position in the futures contract.

When a Position Is First Taken in a Futures Contract