Q17
The marking to market of a futures contract is done
A.
Daily, based on the opening price for the day
B.
Weekly, based on the opening price for the week
C.
Daily, based on the closing price for the previous day
AnswerD.
Weekly based on the closing price for the previous week
Answer: Option C
Solution
Answer: Option C
Solution:
The marking to market of a futures contract is done daily, based on the closing price for the previous day. In Mark-to-Market accounting the asset values are determined according to market prices at the end of each day in order to arrive at the profit or loss status of the parties in a futures transaction.