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  3. marks) 4) a) briefly explain the following terms:

marks) 4) a) Briefly explain the following terms: i. Initial Margin (2 marks) ii. Maintenance...

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Finance

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marks) 4) a) Briefly explain the following terms: i. Initial Margin (2 marks) ii. Maintenance Margin (2 marks) iii. Variation Margin (2 marks) iv. ABC Company Ltd purchased 5000 cocoa futures contract at a price of $150 per contract. As part of the contract, ABC was required to deposit $10 per contract initially in their account with the maintenance margin set at $5 per contract. If the price per contract falls to $142 overnight, what action will the exchange require ABC to undertake? (9 Marks) 10:56 PM b) Emmanuella purchased a put option on e Message

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