Which of the Following Statements About the Counterparty to a Risk

Multiple Choice

Which of the following statements about the counterparty to a risk management derivatives contract is correct?

A) The counterparty has the same expectations about future price movements as the risk manager.
B) The counterparty charges a fixed fee of $5 per contract.
C) The counterparty is in all likelihood a speculator.
D) All of the above are correct.