Business High School

15. Which one of the following statements is true? A. The maintenance margin is the amount of money you post with your broker when you buy or sell a futures contract. B. If the value of the margin account falls below the maintenance-margin requirement, the holder of the contract will receive a margin call. C. A margin deposit can only be met with cash. D. All futures contracts require the same margin deposit. E. The maintenance margin is set by the producer of the underlying asset.

Answers

Answer 1

Answer:

b because it kinds of relate 2 agreeing 2 buy or sell a pacific amount of sum

Explanation:

Answer 2

B- The value if it falls below the maintenance-margin requirement, the holder of the margin receives a margin call and ultimately becomes liable to pay such sum to proceed further.

The margin trade funding is a system used by the discount brokers to facilitate its clients to trade with a gradually less amount of funds in the balance with the broker.

The client however is required to pay certain fees to avail such facilities offered by the discount broker on the trade of futures and options in the stock market.

But the statement that securities investments are subject to market risks and the money can be zeroed essentially so trades are only advisable to be undertaken by the trader in future securities.

When the margin of account holder falls below the allotted margin i.e., it becomes negative then in such cases the trader is liable to bear the losses realized due to such trades.

Hence, the correct option is B that the trader will be liable to receive a margin call and pay any such dues arising out of it.

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