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Management · Q790

International Finance and Treasury

Graduate and Post Graduate · Management · question 790

Q790

The counterpart risk is

A.
the risk of loss when exchange rates change during the period of a financial contract
B.
based on the notional amount of the contract
C.
the risk of loss if the other party to a financial contract fails to honour its obligation
Answer
D.
present only with exchange-traded options

Answer: Option C

Solution

Answer: Option C
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