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ACI

3I0-012 · Question #192

Which one of the following statements about mark-to-model valuation is correct?

The correct answer is D. Mark-to-model valuation refers to prices determined by financial models, rather than actual market prices. See the full explanation below for the reasoning.

Question

Which one of the following statements about mark-to-model valuation is correct?

Options

  • AMark-to-model valuation is used for exchange-traded positions to ensure correct pricing.
  • BAsset managers are not allowed to use mark-to-model valuation.
  • CMark-to-model valuation is used for complex financial instruments; it is always accurate and in line with
  • DMark-to-model valuation refers to prices determined by financial models, rather than actual market prices.

How the community answered

(40 responses)
  • A
    5% (2)
  • B
    15% (6)
  • C
    8% (3)
  • D
    73% (29)

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