Marking-To-Market Refers To

question 8

Multiple Choice

Marking-to-market refers to:

• A) adjusting a futures trading account for the day's trading gains and losses so that the futures position has a zero value after the adjustment
• B) issuing a bond with a coupon rate equivalent to the market interest rate
• C) adjusting a forward's price so that the forward contract has zero value
• D) issuing an option with a strike price that is the same as the underlying asset's market price
• E) None of these answers are correct.

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Definitions:

Indirectly Benefit

To gain advantages or positive effects as a secondary consequence of an action or situation, not as the immediate or primary goal.

Informed Consent

The process through which individuals are provided with sufficient information about a study to make an educated decision about their participation.

Institutional Safeguard

Measures and policies implemented to protect the integrity, security, and functionality of institutions.

Essential Elements

Fundamental components or aspects necessary for something to function or achieve its purpose.