Consider the Following Two Statements: (I) Mark-To-The-Market Provisions Protect the Seller

question 27

Multiple Choice

Consider the following two statements: (i) mark-to-the-market provisions protect the seller of a futures contract if the market price of a
Product drops between the contract date and the delivery date.
(ii) mark-to-the-market provisions protect the buyer of a futures contract if the market price of a
Product increases between the contract date and the delivery date.

• A)(i) is correct, (ii) is incorrect.
• B)(ii) is correct, (i) is incorrect.
• C)(i) and (ii) are both correct.
• D)(i) and (ii) are both incorrect.
• E)(i) and (ii) are both correct only if it is a forward contract.

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Definitions:

Jungian

Jungian pertains to the theories and methodologies related to the psychology of Carl Jung, emphasizing concepts like the collective unconscious and archetypes.

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Pertaining to evolution; involving gradual changes in species over generations through natural selection and genetic variation.

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Behaviors or traits that increase the survival or reproductive success of organisms in a particular environment.

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Organisms that hunt and consume other organisms (prey) for sustenance, playing crucial roles in maintaining ecological balance by controlling prey populations.