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Forwards are subject to counterparty risk because they are private contracts between two parties, and there is a risk that one party may default on their obligations. In contrast, futures contracts (option B) are typically traded on organized exchanges with a clearinghouse acting as the counterparty to both parties, reducing counterparty risk. Options (option C) also involve counterparty risk, but it is generally lower compared to forwards because options are standardized and often traded on organized exchanges with similar clearing mechanisms as futures contracts.
Attorney-generals from 16 states condemned the ban yesterday and were discussing whether to challenge the administration in court.
Direction: In the following question, a sentence is given, divided into 5 parts. Part (E) is grammatically correct. Out of the other four parts, one pa...
Directions: The following sentences are divided into parts. Identify if there is any error in any of the parts. If there is an error, choose the lette...
It calls for the importance of reskilling in order to prepare current and future workforces for the job of the future.
Rise in the water level in the village and adjoining areas has laid to waterlogging and destruction of standing crops in the village.
In the following questions, some parts of the sentences have errors and some are correct. Find out which part of a sentence has an error. The number of...
Given below are sentences with an error in each. The error is in one part of the sentence. Below each sentence are given the options containing the par...
A well-developed corporate bond market provides additional avenues to corporate for rising funds in a cost effective manner and reduces reliance...
Of the four given options, choose the most appropriate one.
I’ve got abusydaytomorrow, so IthinkI’ll hit thesack.
