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      Question

      In case when prices are going down, buyer of a futures

      position will be given a call for the margin:
      A When the margin falls below the maintenance margin Correct Answer Incorrect Answer
      B When the margin falls below initial margin but is still above maintenance margin Correct Answer Incorrect Answer
      C When the margin is above the maintenance margin Correct Answer Incorrect Answer
      D When the margin is zero Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      If the margin account falls below the maintenance margin, a broker may call to deposit more funds and must bring the margin account back to initial margin amount. The amount necessary to this is called a variation margin

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