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Which of the Below Statements Is TRUE

Question 19

Multiple Choice

Which of the below statements is TRUE?


A) Futures contracts are marked to market at the end of most trading days.
B) A forward contract may or may not be marked to market, depending on the wishes of the two parties.
C) For a forward contract that is not marked to market, there are interim cash flow effects because no additional margin is required.
D) The parties in a forward contract are not exposed to credit risk because either party may not default on the obligation.

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