The price at which a futures contract is set at the end of the day is the
A) Stock price.
B) Strike price.
C) Maintenance price.
D) Settlement price.
E) Parity price.

Question

Quizplus · Accepted Answer

The price at which a futures contract is set at the end of the day is known as the settlement price, which is the final price of the contract for that day. This price is used to calculate gains or losses for traders who hold positions in the contract, and to determine margin requirements. Option A (stock price) is not correct as futures contracts are not directly related to stock prices. Option B (strike price) is not correct as that is the price at which an option can be exercised. Option C (maintenance price) is not correct as that refers to the minimum account balance required to hold a futures contract. Option E (parity price) is not correct as that is the theoretical price of a currency or asset based on its exchange rate or market value.

The Price at Which a Futures Contract Is Set at the End