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You are trading a futures contract that requires an initial margin of 5% on the notional value of the future. What is the leverage that

  1. You are trading a futures contract that requires an initial margin of 5% on the notional value of the future. What is the leverage that your margin position is effectively controlling vs. the notional value?
    1. 5 times your margin amount
    2. 10 times your margin amount
    3. There is no leverage involved
    4. The leverage cannot be determined
    5. 20 times your margin amount

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