With Futures Contracts,a Trader's Position Is "Marked to Market" Daily

question 10

Multiple Choice

With futures contracts,a trader's position is "marked to market" daily.This means that an investor who bought a Treasury bill futures contract will end up with what change in account value if interest rates drop on a given day?

• A)none-the difference in value simply accrues until the contract is sold
• B)the trader's account will increase in value
• C)the trader's account will decrease in value
• D)it can not be determined with only this information

---

Definitions:

Situation Analysis

The process of evaluating the current status of a company or project to identify strengths, weaknesses, opportunities, and threats (SWOT).

Stewardship Considerations

Involves responsible planning and management of resources, ensuring they are used ethically and sustainably.

Ongoing Relationship

A continuous interaction or connection between individuals or entities that evolves over time.

Discrimination

The unfair or prejudicial treatment of people based on characteristics such as race, age, gender, or disability.