Counter Party Credit Risk in OBS Contracts

Multiple Choice

Counter party credit risk in OBS contracts

A) is the risk that the counterparty will likely default when he is in the money on a contract position.
B) refers to the risk that a counterparty will default when suffering large actual or potential losses on its position.
C) requires the counterparty to return to the market and replace contracts at less favorable terms.
D) All of the options.
E) None of the options.