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    Question

    As per the changes in the market price, the profit or

    loss is reflected in the financial instrument recording is know as ______ 
    A Hedging Correct Answer Incorrect Answer
    B Clearing Correct Answer Incorrect Answer
    C Marking-to-Market Correct Answer Incorrect Answer
    D Netting Correct Answer Incorrect Answer
    E Margining Correct Answer Incorrect Answer

    Solution

    In derivatives, Mark-to-Market (MTM) involves daily settlement of gains and losses based on market prices.

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