Answer-In a futures contract, marking-to-market refers to:

A key feature of futures exchanges. Profits and losses are calculated and crediteddebited to traders margin accounts at the end of each trading day, reducing counterparty risk.

Question

In a futures contract, marking-to-market refers

to:

A Daily settlement of gains and losses.

B The final delivery of the underlying asset.

C The initial margin payment.

D The process of hedging.

E None of these

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In a futures contract, marking-to-market refers

Solution