'Marking to Market' Is a Process of the Clearinghouse Whereby

question 42

Multiple Choice

'Marking to market' is a process of the clearinghouse whereby:

• A)funds are demanded from each trader that incurs a loss.
• B)funds are returned to each trader that earns a profit.
• C)each trader's position is updated according to the average market price determined on that day.
• D)each trader's position is adjusted according to the market price determined at the close of each trading day.

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Definitions:

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