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What are the problems that are associated with marking to the markets?

      

What are the problems that are associated with marking to the markets?

  

Answers


Dana
The firm must have extra liquidity to handle a certain outflow prior to expiration. Such a risk will make the futures contract less attractive
A change in the price of the futures contract will have a significant impact on the present value of buyer’s outflows

Dana05 answered the question on July 15, 2019 at 15:16


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