Which one of the following refers to the daily settlement of obligations on future positions?
A) Marking to market
B) The convergence property
C) The open interest
D) The triple witching hour

Question

Quizplus · Accepted Answer

Marking to market refers to the process of daily settlement of obligations on future positions by adjusting the contract price to reflect the current market price. This ensures that both parties have sufficient funds or collateral to fulfill their obligations.

Which One of the Following Refers to the Daily Settlement