Which of the Below Statements Is TRUE

question 3

Multiple Choice

Which of the below statements is TRUE?

• A) Futures contracts are marked to market at the end of most trading days.
• B) A forward contract may or may not be marked to market, depending on the wishes of the two parties.
• C) For a forward contract that is not marked to market, there are interim cash flow effects because no additional margin is required.
• D) The parties in a forward contract are not exposed to credit risk because either party may not default on the obligation.

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Definitions:

Reactant A

A placeholder term for a substance that undergoes a chemical change in a chemical reaction.

Product B

A term that broadly refers to a secondary or resultant compound generated in a chemical reaction, distinguished from other products by its labeling as "B".

Authentic Presence

The genuine and sincere engagement of an individual in the moment or with another person.

Healing Environments

Healing environments are spaces intentionally designed to promote and support health, well-being, and recovery, often integrating elements of nature and tranquility.