36. If the investors opening position is the sale of a Eutures contract (whteh s

Question

36. If the investors opening position is the sale of a Eutures contract (whteh seans the contractua) obligation to sell some thing in the future) A. shore posicion long long futures none of the above posicion D. 3 The buyers of a futures contract vill realize a profic if the futures pri ce ; the seller of a futures contract will realize a profit if the futures price decreases, increases increases, decreases increase, increases decreases, decrease D. Associated with every futures exchange is a clearinghouse, which perforus the function(s) ofE A. accepting delivery of the underlying. B. guaranteeing that the tvo parties to the transaction will perform. C. making it simple for parties to a futures contract to unwind their . positions prior to the settlement date B and C 3 S3.The asset or instrument that the parties agree, to exchange in a futures contract is known as a(n) A. futures B. underlying C. short D. all of the above The additional margin that must be deposited to bring the equity in the account back to its inicial margin level is known as the margin maintenance replenish C. variation D. full-pack- 3S The minimum margin level by which an investor's equity position may fall as a result of an unfavorable pricc movement before the investor is required to deposit additional margin, is known as the margin. A. maintenance replenish C. variation D. "full-pack" 3b. then a position is first taken in a futures contract, the amount per contract specified by the exchange that must be put up as margin is known as the A. initial B. maintenance C. variation D. underlying margin

Explanation / Answer

30) A. short position

31) B. increases, decreases

32) D. B and C (ie. guaranteeing that the two parties to the transaction will perform. AND making it simple for parties to a futures contract to unwind their positions prior to the settlement date.)

33) B. underlying

34) A. maintenance

35) C. variation

36) A. initial

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