Futures exchanges require traders to post collateral known as:
AMargin
BMandate
CManifest
DMortgage
Answer & Solution
Correct answer: A. Margin
1. Both buyer and seller must guarantee performance.
2. A deposit serves as that guarantee.
3. That deposit is margin.
_Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._
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