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 daily adjustment of the value of a futures contract to reflect the current market price. This involves settling any gains or losses on open positions at the end of each trading day, ensuring that both parties to the contract have fulfilled their obligations.

Which One of the Following Refers to the Daily Settlement