The price at which a futures contract is set at the end of the day is the
A) stock price.
B) strike price.
C) maintenance price.
D) settlement price.
E) parity price.

Question

Quizplus · Accepted Answer

The settlement price is the price at which a futures contract is settled at the end of the day. It is determined by the exchange and is used to determine profits or losses for traders holding positions in the futures contract. The other choices (stock price, strike price, maintenance price, parity price) are all different types of prices, but they are not the specific price that determines the settlement of a futures contract.

The Price at Which a Futures Contract Is Set at the End