The maintenance margin for a futures contract refers to:a. The level to which a margin deposit must be returned after a margin call has been madeb.

1. The maintenance margin for a futures contract refers to:a. The level to which a margin deposit must be returned after a margin call has been madeb. The level to which a margin deposit is set when an investor enters a long futures positionc. The difference between the futures market price and the contract priced. The level of the margin deposit that would trigger a margin call2. Which of the following statements is the most accurate?a. Stock markets facilitate the flow of funds from saving-deficit units to savings-surplus unitsb. Stock markets facilitate the trading of shares of all companiesc. An equally weighted portfolio consisting of all shares traded on the Australian Stock Exchange would represent the market portfoliod. Stock markets provide liquidity for share trading.3. An investor with a long futures position to buy one hundred ounces of gold for $1553 in September 2015 decides to reverse this position in June 2015 when the stop price is $1533 and the September futures price is $1543, they will:a. Make a loss of $1000b. Make a profit of $1000c. Make a loss of $2000d. Make a profit of $20004. An over-the-counter forward contract:a. Is marked-to-market dailyb. Will be closed-out by the clearing house if a margin call is ignoredc. Is not subject to daily settlementd. Rarely involves physical delivery5. If a firm makes a 1 for 5 rights issue when its shares are trading for $9.90 that will allow investors to purchase new shares for $8.00, by how much should the share price fall when they trade ex-rights if there are no other influences on the share price?a. 32cb. 38cc. $1.58d. $1.906. If an individual who takes a short position in a futures contract wishes to realise a profit from their position, they should:a. find a buyer and sell their positionb. offset their original contract by entering into another as a sellerc. offset their original contract by entering into another as a buyerd. take delivery of the commodity7. Relative to the maturity of a bond, the duration is:a. longer when interest rates exceed the coupon rateb. longer when interest rates are less than the coupon ratec. shorter when the bond does not pay coupon interestd. shorter when the bond does pay coupon interest8. Australian stock brokers differ from dealers in that:a. dealers buy and sell from their own portfolio whereas brokers only act on behalf of clientsb. brokers buy and sell from their own portfolio whereas dealers only act on behalf of clientsc. dealers only execute market orders while brokers only execute limit ordersd. brokers only execute market orders while only execute limit orders