Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) In a futures contract, daily cash flows pass, via the clearing house, between the buyer and seller in response to the mark-to-market process.
B) In a forward contract, daily cash flows pass, via the clearing house, between the buyer and seller in response to the mark-to-market process.
C) In a futures contract, daily cash flows pass, via the clearing house, between the buyer and seller in response to the mark-to-book value process.
D) In a forward contract, daily cash flows pass, via the clearing house, between the buyer and seller in response to the mark-to-book value process.