The risk arising from counterparty’sfailure to meet its fianacial obligation is

Related MCQs

• The contract which gives the buyer the right but not obligation
• The option contract which gives the seller the obligation to buy is
• The risk that arises due to adverse movementsin the price of a financial asset or commodity
• The persons who enter into derivative contract with the objective of covering risk
• The persons who enter into derivative contract in anticipation of lower expected return at the reduced risk
• Hedging risk for a long position is accomplished by
• Hedging risk for a short position is accomplished by
• A swap where interest rate risk can be shifted byconverting floating rate liability or vice versa
• Which of the following does the most to reduce default risk for futures contracts?
• Using futures contracts to transfer price risk is called: