With futures contracts,a trader's position is "marked to market" daily.This means that an investor who bought a Treasury bill futures contract will end up with what change in account value if interest rates drop on a given day?

Question

Quizplus · Accepted Answer

When interest rates drop, the value of Treasury bill futures contracts typically increases because the price of the underlying Treasury bills moves inversely to interest rates. Since futures contracts are "marked to market" daily, any gain in value is credited to the trader's account, leading to an increase in account value.

With Futures Contracts,a Trader's Position Is "Marked to Market" Daily