1. The value of a futures contract between the times when the position is marked-to-market is:

A. equal to the difference between the current market price of the contract and the most recent mark-to-market price.

B. never less than the value of a forward contract that will expire on the same date at the same forward price.

C. the accumulated gain or loss since the initiation of the futures position.

D. the same as the contract current price.

2. Rosenburg Materials has received 100 million pounds sterling. The company plans to spend $175 million on a project in the United States in 90 days. Rosenburg enters into a cash settlement (settlement in US dollars) currency forward to exchange the pounds for U.S. dollars at a rate of $1.75 per pound in 90 days. If the exchange rate is $1.72 per pound at the settlement date, the cash settlement Rosenburg will pay or receive is closest to:

A. $8.8 million receipt.

B. $3 million payment.

C. $3 million receipt.

D. $8.8 million payment.