Which of the following is correct regarding futures contracts?
A)Futures contracts are marked-to-market on a daily basis.
B)Futures contracts are marked-to-market on a monthly basis.
C)Futures contracts are not marked-to-market.
D)Futures contracts are marked-to-market semiannually.

Question

Quizplus · Accepted Answer

Futures contracts are marked-to-market on a daily basis, meaning that the gains or losses on the contract are settled each day based on the current market price. This helps ensure that each party to the contract is meeting their financial obligations and reduces the risk of default.

Which of the Following Is Correct Regarding Futures Contracts