Margin requirements for futures contracts can be met by ________.
A) cash only
B) cash or highly marketable securities such as Treasury bills
C) cash or any marketable securities
D) cash or warehouse receipts for an equivalent quantity of the underlying commodity

Question

Quizplus · Accepted Answer

Margin requirements for futures contracts can be met by cash or highly marketable securities such as Treasury bills. This is done to ensure that there are sufficient funds available to cover any losses incurred during trading. While other options such as warehouse receipts for the underlying commodity may be acceptable in some cases, cash or highly marketable securities are typically the preferred choice.

Margin Requirements for Futures Contracts Can Be Met by ________