Marking to Market Is the Process by Which the Clearing

question 6

Multiple Choice

Marking to market is the process by which the clearing house of an exchange ________.

• A) debits and credits the losses and profits to the margin accounts from the daily price changes of futures prices; closes the contract, and opens a new one at the new price
• B) forces the investor to go long the currency
• C) allows the market forces to affect daily prices until the expiration date
• D) closes the old contract and sets the price of a new contract a zero