In the Futures Markets,if a Futures Contract Is Marked-To-Market,this Refers

question 21

Multiple Choice

In the futures markets,if a futures contract is marked-to-market,this refers to the:

• A) interaction of the demand and supply forces in the market to determine the price of the options contract.
• B) interaction of the demand and supply forces in the market to determine the price of the futures contract.
• C) settlement of gains and losses on futures contracts on a daily basis.
• D) settlement of gains and losses on forward contracts on a daily basis.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved, leading to a net loss in total surplus.

Mutual Exchanges

A process where parties agree to transfer goods, services, or other items of value with each other.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services, often aimed at curbing inflation or protecting consumers.