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6.         Question 6 [Total: 20 marks]                             &

6.         Question 6 [Total: 20 marks]

                                                   

  1. Please discuss how “variation margin” and “margin call” are related in the context of daily settlement procedure.                                                                               

[10 marks]

b) What are the most important aspects of the design of a new futures contract?

     [10 marks]

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