The Process of Marking a Futures Contract to Market Means

question 41

Multiple Choice

The process of marking a futures contract to market means that:

• A) the profitability of the contract is locked in from the onset of the contract.
• B) the amount of commodity to be delivered changes as prices change.
• C) contracts are closed out as soon as they become unprofitable.
• D)profits or losses are posted to the contract daily.

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Definitions:

Partnership Status

The legal standing of a business entity comprising two or more individuals who share management and profits.

Compensation

Payment or benefits awarded to individuals for their services, labor, or for losses suffered.

Creditors

Individuals or entities that are owed money by debtors.

Venture

A new business enterprise or undertaking that involves some level of risk.