The settlement price is typically the price at or near the end of the trading day, i.e., the closing price used by the exchange for marking positions to market.

Why B is correct:

• Futures positions are usually marked to market using the daily settlement price.
• This price is generally based on end-of-day trading activity.

Why the other options are wrong:

• A: That describes an opening price, not settlement price.
• C and D: Settlement price is not typically a simple average.