...is the process by which the prices on outstanding futures contracts are adjusted each day to reflect current futures market conditions.
A)Hedging
B)Marking to market
C)Arbitrage
D)Securitisation

Question

Quizplus · Accepted Answer

Marking to market is the process of adjusting the prices on outstanding futures contracts each day to reflect current futures market conditions. This ensures that traders and investors are held accountable for their obligations and prevents the accumulation of large losses or gains. Hedging is a risk management strategy used to offset potential losses by taking an opposing position in a related asset, while arbitrage is the practice of exploiting price differences to make a profit. Securitisation is the process of pooling assets together and transforming them into marketable securities.

Is the Process by Which the Prices on Outstanding Futures