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    Exam 11: Forwards, Futures, and Swaps
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    When Does Counterparty Risk Arise
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When Does Counterparty Risk Arise

Question 43

Question 43

Multiple Choice

When does counterparty risk arise?


A) When the spot price increases.
B) When the investor takes a naked position.
C) When the speculator loses to the counter party.
D) When the counterparty defaults.

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