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Is Marking-to-Market a Feature of European-Style Options?

No, the option premium is paid upfront and is not subject to the daily cash settlement process of marking-to-market.
Greeks.Live22.11.25

Is Marking-to-Market a Feature of European-Style Options?

No, marking-to-market is generally not applied to the premium of exchange-traded options. The premium is paid upfront by the buyer to the seller and is not subject to daily cash settlement like futures.

The option's value fluctuates, but the cash is not transferred daily. The option is only settled upon exercise or expiration.

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