Multiple Choice
Marking to market is the process by which the clearing house of an exchange ________.
A) debits and credits the losses and profits to the margin accounts from the daily price changes of futures prices; closes the contract, and opens a new one at the new price
B) forces the investor to go long the currency
C) allows the market forces to affect daily prices until the expiration date
D) closes the old contract and sets the price of a new contract a zero
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Due to arbitrage,the futures price at maturity
Q2: What are the differences between foreign currency
Q3: What effects does "marking to market" have
Q4: Unlike forward contracts,the size of currency futures
Q5: The hedging contract that gives the buyer
Q7: The exchange rate in an option contract
Q8: When the value of the futures contract
Q9: _ is a daily settlement feature of
Q11: Which of the following conditions would be
Q18: Suppose the current spot rate for the