By definition,which one of the following contracts is marked to the market on a daily basis?
A)forward contract
B)spot contract
C)hedge
D)swap
E)futures contract

Question

Quizplus · Accepted Answer

Futures contracts are marked to market on a daily basis, which means that the gains or losses on the contract are settled on a daily basis. This is done by adjusting the margin account of the parties involved in the contract. The other options are not marked to market on a daily basis.

By Definition,which One of the Following Contracts Is Marked to the Market