ACI Dealing Certificate (#73)

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

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