n NISM Certifications
VII NISM Series VII
Medium

Daily settlement prices are computed for futures contracts based on a specified methodology. State True or False.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Daily settlement prices for futures are computed using a defined methodology. Open positions are marked-to-market daily to determine profit/loss obligations and carried forward at the latest settlement price.

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