…………. risk is a loss may occur from the failure of another party to perform according to the terms of a contract?

Related MCQs

• 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
• The main reason to buy an option on a futures contract rather than the futures contract is
• A swap deal wherein floating rate payer pays the floating rate square or cubic or any power of the rate to the counter party
• The risk arising from counterparty’sfailure to meet its fianacial obligation is
• The risk that arises due to adverse movementsin the price of a financial asset or commodity
• 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?