The Calculation of the Risk-Adjusted Asset Values of OBS Market

Multiple Choice

The calculation of the risk-adjusted asset values of OBS market contracts:

A) nearly always equals zero because the exchange over which the contract initially traded assumes all of the risk
B) requires multiplication of the credit equivalent amounts by the appropriate risk weights and includes all OBS transactions
C) requires the calculation of a conversion factor to create credit equivalent amounts for all OBS transactions
D) requires multiplication of the credit equivalent amounts by the appropriate risk weights and the calculation of a conversion factor to create credit equivalent amounts