What financial instrument is considered an "improvisation" over forwards?

Options Futures Stocks Bonds

What is the term for the minimum quantity specified in a futures contract?

Contract Value Expiry Date Lot Size Margin

How are equity futures contracts settled?

Physical Delivery Cash Settlement Options Exercise None of the Above

What is the term for the daily adjustment of profits or losses in futures trading?

Mark to Market Margin Call Initial Margin Contract Value

What is the primary purpose of margins in futures trading?

To generate profit for exchanges To increase leverage for traders To mitigate counterparty default risk To complicate the trading process

What is the term for the margin that must be maintained in a trader's account to avoid penalties?

Exposure Margin Initial Margin SPAN Margin Maintenance Margin

What happens when a trader's account falls below the SPAN margin requirement?

The trader receives a bonus The trade is automatically closed The trader receives a margin call Nothing happens