The value of a futures contract immediately after being marked to market is
A)numerically equal to the daily settlement amount
B)the spot price plus the original forward price
C)equal to the amount by which the price changed since the contract was opened
D)simply zero
E)none of the above

Question

Quizplus · Accepted Answer

The value of a futures contract immediately after being marked to market is zero because any gains or losses have been settled, bringing the value back to zero until the next price movement.

The Value of a Futures Contract Immediately After Being Marked