In the futures markets,if a futures contract is marked-to-market,this refers to the:
A) interaction of the demand and supply forces in the market to determine the price of the options contract.
B) interaction of the demand and supply forces in the market to determine the price of the futures contract.
C) settlement of gains and losses on futures contracts on a daily basis.
D) settlement of gains and losses on forward contracts on a daily basis.

Question

Quizplus · Accepted Answer

When a futures contract is marked-to-market, the gains and losses on the contract are settled on a daily basis. This means that any profits or losses that have accumulated over the course of the day are settled at the end of the trading day, rather than waiting until the expiration of the contract. This process is also known as daily settlement. Therefore, option A, option B, and option D are incorrect.

In the Futures Markets,if a Futures Contract Is Marked-To-Market,this Refers