Question: If the margin held by an exchange falls below the maintenance margin, the affected party will be required to undertake the following action: a. Prior
If the margin held by an exchange falls below the maintenance margin, the affected party will be required to undertake the following action:
a.
Prior to the maturity of the contract, provide enough cash funds or collateral to the exchange such that the margin value held by the exchange equals (or exceeds) the initial margin
b.
Immediately provide enough cash funds or collateral to the exchange such that the margin value held by the exchange equals (or exceeds) the initial margin
c.
Make an insurance claim to recoup the outstanding loss
d.
Within 14 days, provide enough cash funds or collateral to the exchange such that the margin value held by the exchange equals (or exceeds) the initial margin
e.
Immediately close the position in order to prevent any further loss
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
