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What is the term for the initial deposit required to enter into a futures contract?

• Initial margin

• Maintenance margin

• Margin call

• Settlement price

Which of the following is true about forward contracts?

• They are marked to market daily.

• They are settled at the end of the contract.

• They are traded on regulated exchanges.

• They are standardized agreements.

If a trader expects the price of an asset to fall, what position should they take in a futures contract?

• Long position

• Short position

• Neutral position

• Hedge position

What does "marking to market" mean in the context of futures contracts?

• Adjusting the contract size based on market conditions.

• Closing out a contract before its expiration date.

• Settling gains and losses on a daily basis.

• Locking in a fixed price for future delivery.

What happens if the price of an asset increases after a trader has entered into a long futures contract?

• The trader will incur a loss.

• The trader will gain profit.

• The trader will be required to increase the margin.

• The contract will be cancelled.

A company wants to hedge against rising oil prices. Which of the following should it use?

• A short futures contract on oil

• A long futures contract on oil

• A hedge futures agreement on oil

In futures trading, what is a "margin call"?

• A demand by the broker for additional funds to maintain the margin account.

• A call option on futures contracts.

• A request to close out a futures position.

• An alert for the expiration date of a futures contract.