Is the Process by Which the Prices on Outstanding Futures

question 51

Multiple Choice

...is the process by which the prices on outstanding futures contracts are adjusted each day to reflect current futures market conditions.

• A)Hedging
• B)Marking to market
• C)Arbitrage
• D)Securitisation

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Definitions:

Compliance

Refers to the act of following and adhering to rules, regulations, standards, or laws.

Voucher

Any document that serves as proof of authority to pay cash or issue an electronic funds transfer, but for many businesses is a special form used to record data about a liability and the details of its payment.

Cash Payment

A financial transaction involving the outflow of cash from one party to another as a form of payment.

Internal Control

Methods and protocols established by an organization to guarantee the reliability of financial and accounting data, foster responsibility, and avert deceit.