What is the difference between an initial margin and a maintenance margin?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
An initial margin is the minimum amount that must be deposited on the first day or a tr...View the full answer
Answered By
Suresh Gandhale
I completed my Post graduation from Savitribai Phule Pune University, Pune. I completed my graduation from Ahmednagar College Ahmednagar.
I also cleared NET( National eligibility test) exam with all India rank 60.
Currently I am teacher of mathematics in Ahmednagar College Ahmednagar.
0.00
0 Reviews
10+ Question Solved
Related Book For
Introduction To Derivatives And Risk Management
ISBN: 9781305104969
10th Edition
Authors: Don M. Chance, Robert Brooks
Question Posted:
Students also viewed these Finance questions
-
Explain how margin trading is conducted in the futures market. a.What is the difference between an initial deposit and a maintenance deposit? b.Are investors ever required to put up additional...
-
What is the difference between an MRP system and an ERP system?
-
What is the difference between an e-mail and an Internet survey?
-
Match each of the key terms with the definition that best fits it. ________ The process of ensuring that only authorized changes are made to a system. Here are the key terms from the chapter. The...
-
Kenneth Cole Productions (KCP) was acquired in 2012 for a purchase price of $15.25 per share. KCP has 18.5 million shares outstanding, $45 million in cash, and no debt at the time of the acquisition....
-
Each person tries to balance his or her time between leisure and work. The tradeoff is that as you work less your income falls. Therefore each person has in difference curves which connect the number...
-
Go into the meeting room when it is empty or not in use and get a feel for the surroundings. Stand in the place where the presentation will be made (in the front of the room, at the lectern, or on...
-
A variation of the indicator dilution method (see preceding problem) is used to measure total blood volume. A known amount of a tracer is injected into the bloodstream and disperses uniformly...
-
P12-32A (similar to) The following transactions of Right Aid Pharmacies occurred during 2018 and 2019: (Click the icon to view the transactions.) Read the requirements Requirement 1. Journalize the...
-
A publisher offers college professors one of four best-selling mass-market books as an incentive for filling out a 10-page mail questionnaire about a new textbook. What advantages and disadvantages...
-
How can one make a profit form a transaction in light of the bid-ask spread, assuming the spread remains constant?
-
Explain the basic differences between open-outcry and electronic trading systems?
-
Nearly 20 EU countries have adopted the euro as their national currency and are termed the eurozone. Sharing a single currency eliminates exchange fluctuations and simplifies trade. Eurozone firms...
-
Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers Transactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period...
-
Panguitch Company had sales for the year of $100,000. Expenses (except for income taxes) for the year totaled $80,000. Of this $80,000 in expenses, $10,000 is bad debt expense. The tax rules...
-
Assume that the composition of federal outlays and receipts shown in the figure remained the same in 2019. In the figure, the categories "Defense and homeland security" and "Non-defense...
-
1) A car's age is a _ variable. Quantitative O Categorical 2) A car's maker is a variable O Quantitative Categorical 3) A house's square footage is a _________variable O Quantitative O Categorical 4)...
-
The following table shows the distribution of clients by age limits. Use the grouped data formulas to calculate the variance and standard deviation of the ages. Rango de edad Cantidad de clientes...
-
Each of the four diagrams in Figure 7.30 shows lines in the same plane. Classify each of the statements in Problems 4651 as true or false. The lines b 1 and b 2 are vertical. a. 50 93 120 a2 a b. b3...
-
Consider the following cash flows in Table P5.5. (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate a payback period for project D. (c) Assuming...
-
Assume that the real risk-free rate, r*, is 3 percent and that inflation is expected to be 8 percent in Year 1, 5 percent in Year 2, and 4 percent thereafter. Assume also that all Treasury securities...
-
Due to a recession, the inflation rate expected for the coming year is only 3 percent. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3 percent....
-
Suppose you and most other investors expect the inflation rate to be 7 percent next year, to fall to 5 percent during the following year, and then to remain at a rate of 3 percent thereafter. Assume...
-
The Balance Sheet has accounts where the accountant must make estimates. Some situations in which estimates affect amounts reported in the balance sheet include: Allowance for doubtful accounts....
-
Alado fis istirmerfs Tat likifond 205L [ridont inip lanod whadtinion? hingend is antan Qultit foer avdeed Divdasit errem yodichiders Etexlpoges Getmare nelp
-
The limitation on the deduction of business interest does not apply to non-corporate taxpayers. course hero True or False explain?
Study smarter with the SolutionInn App