The Value of a Futures Contract Immediately After Being Marked

question 31

Multiple Choice

The value of a futures contract immediately after being marked to market is

• A)numerically equal to the daily settlement amount
• B)the spot price plus the original forward price
• C)equal to the amount by which the price changed since the contract was opened
• D)simply zero
• E)none of the above

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Definitions:

Franchising

A business model wherein a business owner (franchisor) grants to an individual or entity (franchisee) the rights to operate a business under the franchisor's brand and system in exchange for a franchise fee and ongoing royalties.

Foreign Market

This refers to the markets outside the domestic boundaries where a company can sell its products or services, often requiring adaptation to local needs and regulations.

Franchisor

An entity or individual that grants another party the right to conduct business under their trademark or trade name in exchange for a franchisee fee and a percentage of franchise operation sales.

Franchisee

An individual or company that is granted the license to do business under the franchisor's trademark, brand, and business model.