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Q2a) A main task of the clearing house of a futures exchange is to set and adjust the level of margin requirements from time to

Q2a) A main task of the clearing house of a futures exchange is to set and adjust the level of margin requirements from time to time. What is a major factor that the exchange considers in setting the level of margin for a given contract? Please elaborate.

b) Daily marking-to-market is a standard feature in futures trading. Briefly explain the importance of this feature.

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