QUESTION 13 Suppose that the initial margin for a given futures contract decreases, but the maintenance margin remains the same Which of the following is true, all else being equal People who buy or sell this futures contract after the margin change have the potential for more financial leverage than before The change in the leverage requirement can make the contract more affordable The range in which losses can occur without a margin call being triggered will decrease All of the above

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Question: QUESTION 13 Suppose that the initial margin for a given futures contract decreases, but the maintenance margin remains the same. Which of the following is

QUESTION 13

Suppose that the initial margin for a given futures contract decreases, but the maintenance margin remains the same. Which of the following is true, all else being equal?

		People who buy or sell this futures contract after the margin change have the potential for more financial leverage than before.
		The change in the leverage requirement can make the contract more affordable.
		The range in which losses can occur without a margin call being triggered will decrease.
		All of the above.

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