Chapter 02 · Section 2.1
Margin Calls
FUTURES PURCHASED OPTIONS
Risk (potential loss) Unlimited Limited
Margin Calls ..... .....
Hedging Strategies ..... .....
Price Protection ..... .....
Is this statement correct?
"The holder of a futures contract may be subjected to unlimited margin calls until he closes his position, whereas the holder of an exchange-traded options contract is not subject to any margin calls whatsoever."
a) no
b) yes
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