CFA Practice Question
Which of the following is correct?
A. 'Marking to Market' is done for OTC traded derivatives and decreases the probability of default.
B. On Settlement Date the Futures Price converges to the Spot Price.
C. The change in the Futures Price during a day has to exceed the Price Limits set by the exchange.
Explanation: The change in the Futures Price during a day has to be less than the Price Limits set by the exchange. 'Marking to Market' is not done for OTC traded derivatives.
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