Solved

Consider the Following Two Statements: (I) Mark-To-The-Market Provisions Protect the Seller

Question 43

Multiple Choice

Consider the following two statements: (i) mark-to-the-market provisions protect the seller of a futures contract if the market price of a
Product drops between the contract date and the delivery date.
(ii) mark-to-the-market provisions protect the buyer of a futures contract if the market price of a
Product increases between the contract date and the delivery date.


A) (i) is correct, (ii) is incorrect.
B) (ii) is correct, (i) is incorrect.
C) (i) and (ii) are both correct.
D) (i) and (ii) are both incorrect.
E) (i) and (ii) are both correct only if it is a forward contract.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents