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    Multinational Finance Study Set 1
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    Exam 15: Interest Rate and Currency Swaps
  5. Question
    Counterparty Risk Is
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Counterparty Risk Is

Question 37

Question 37

Multiple Choice

Counterparty risk is


A) present only with exchange-traded options.
B) based on the notional amount of the contract.
C) the risk of loss if the other party to a financial contract fails to honor its obligation.
D) eliminated by the use of insurance funds.

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