The Purchaser of a Futures Contract

Multiple Choice

The purchaser of a futures contract

A) is required to obtain a margin loan equal in amount to the cost of the contract minus the cash down payment.
B) is generally required to make a cash deposit of 10 to 20% of the contract price at the time the contract is entered.
C) does not have to worry about margin calls since margin loans are not required.
D) is affected by the daily procedure known as mark-to-the-market.