QUESTION 123 A futures contract will have its price adjusted each day of the contract’s life...
QUESTION 123
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A futures contract will have its price adjusted each day of the contract’s life - either up or down, depending on current market conditions. This is called:
a. Requirements for futures contracts.
b. Marking to market.
c. Initial margin requirements.
d. Maintenance margin requirements.
QUESTION 124
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With a currency swap, on what date(s) are principal amounts exchanged in each currency?
a. At the beginning of the contract only.
b. At the end of the contract only.
c. At both the beginning and end of the contract.
d. On the "swap date" specified in the contract.
Homework Answers
Answer 123: Option b is correct
The adjustments in price is called as marking to market.
Answer 124: Option c is correct
In currency swap, principal amounts are exchanged both at the
beginning and end of the contract.
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QUESTION 123
A futures contract will have its price adjusted each day of the
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