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Marking to Market Is the Process by Which the Clearing

Question 14

Multiple Choice

Marking to market is the process by which the clearing house of an exchange ________.


A) debits and credits the losses and profits to the margin accounts from the daily price changes of futures prices; closes the contract, and opens a new one at the new price
B) forces the investor to go long the currency
C) allows the market forces to affect daily prices until the expiration date
D) closes the old contract and sets the price of a new contract a zero

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