Deposit that are required in futures contract and is considered as...

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Deposit that are required in futures contract and is considered as guarantee that conditions of contracts would be fulfilled is classified as

A. initial margin

B. futures margin

C. conditional margin

D. non-conditional margin

Answer: Option A

Solution (By Examveda Team)

Deposit that are required in futures contract and is considered as guarantee that conditions of contracts would be fulfilled is classified as initial margin. Initial margin is the percent of a purchase price that must be paid with cash when using a margin account.

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