Question

How is the repricing of futures contracts different from forward contracts?

a.

Futures contracts are not repriced every day, unlike forward contracts.

b.

The repricing of futures contracts is done at the end of the contract, unlike forward contracts.

c.

Unlike forward contracts, futures contracts are repriced every day.

d.

Both futures and forward contracts are repriced in the same manner.

Posted under IC 89 Management Accounting

Answer: (c).Unlike forward contracts, futures contracts are repriced every day. Explanation:Unlike forward contracts, the repricing of futures contracts is done daily. Any resulting profit or loss is debited or credited to the margin account of the broker.

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Q. How is the repricing of futures contracts different from forward contracts?
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