Market Operations - Answers

  1. A. For hedgers, there is no difference between initial and maintenance margins; that only applies to speculators. C and D have nothing whatever to do with margin requirements.
  2. D. T-bonds and T-notes trade in points and 32nds. T-bills trade in decimals.
  3. False. Price limits control how far the contract's value can swing through the course of a trading day, not through the entire life of the position.
  4. B. A retender is actually a way of perpetuating a position.
  5. C. The other terms do not relate to the concept.
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