By definition, which one of the following contracts is marked to the market on a daily basis?
A) Forward contract
B) Spot contract
C) Option contract
D) Swap
E) Futures contract

Question

Quizplus · Accepted Answer

Futures contracts are marked to market on a daily basis, meaning that the gains and losses are settled on a daily basis based on the current market prices. This helps to mitigate the risk of default by either party.

By Definition, Which One of the Following Contracts Is Marked