The Margin Deposit Associated with the Purchase of a Futures

Multiple Choice

The margin deposit associated with the purchase of a futures contract

A) is a partial payment on the contract with the amount of the payment equal to 10% or more of the contract value.
B) represents the purchasers equity in the contract with the balance of the contract financed with borrowed funds at the margin rate of interest.
C) is related to the value of the item underlying the contract.
D) is used to cover any loss in market value of the contract resulting from adverse price fluctuations.