What risk do margin accounts on futures contracts and marking-to-market minimize? Explain your answer.

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 03:14 AM

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What risk do margin accounts on futures contracts and marking-to-market minimize? Explain your answer.

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It minimizes counterparty risk Markingtomarket substantially lowers credit risk and makes fu...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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