n NISM Certifications
VII NISM Series VII
Medium

Daily mark-to-market settlement of futures contracts is always ______.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Settled in delivery

  2. Cash settled

    Correct answer

  3. C

    Adjusted against liquid assets

  4. D

    Adjusted against options position

Why this is the answer

Futures contracts are settled daily in cash based on mark-to-market prices, with accounts debited/credited on T+1.

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