Which One of the Following Refers to the Daily Settlement

question 63

Multiple Choice

Which one of the following refers to the daily settlement of obligations on future positions?

• A) Marking to market
• B) The convergence property
• C) The open interest
• D) The triple witching hour

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Definitions:

Allocated General Overhead

The distribution of indirect costs to specific products or business segments based on a formula or allocation base.

Variable Costs

Costs that change in proportion to the level of production or sales, such as raw materials and direct labor.

Target Costing

A pricing method in which the selling price of a product is determined first, and then the target cost is calculated by subtracting the desired profit margin from the selling price.

Selling Price

The fee customers pay to acquire a product or service.