Profits and losses on futures contracts are:

Profits and losses on futures contracts are:
A . settled upfront
B . settled upon the expiry of the contract
C . settled by moving collateral
D . settled daily

View Answer

Answer: D

Explanation:

Profits and losses on futures contracts are settled daily. (P&L on forward contracts is often settled upon the expiry of the contract, and may even be collateralized.) Therefore Choice ‘d’ is the correct answer.