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:

Shays's Rebellion

An armed uprising in 1786-1787 in western Massachusetts, led by Daniel Shays, protesting against economic injustices and lack of government response, highlighting the weaknesses of the Articles of Confederation.

Spirit of Liberty

A principle or sentiment that champions freedom and the rights of individuals as paramount, often associated with democratic ideals and patriotic expressions.

Federal Troops

Military forces deployed by the government of a federation, especially referring to those used by the United States federal government during domestic interventions.

New Jersey Plan

New Jersey’s delegation to the Constitutional Convention’s plan for one legislative body with equal representation for each state.