Answer: Level of required variation margin

**C. False.** Variation margin is not exactly a feature of the futures contract; it varies by trader because it is extra margin required (in a margin call, triggered when the margin balance falls below the maintenance margin) to restore the margin balance to the initial margin. In regard to **(A), (B), and (D)**, each is a likely specification of a futures contract. The typical contract specifications include: - Asset quality and/or grade - Contract size; e.g., corn futures contract unit is 5,000 bushels per contract - Delivery arrangements - Delivery months - Price quotes; e.g., the price quotation for corn futures is "cents per bushel" - Price limits and position limits

Author: Manit Arora