When Compared to Swap and Option Contracts, Credit Risk Exposure

question 24

True/False

When compared to swap and option contracts, credit risk exposure is greatest with a futures contract.

---

Definitions:

Delivery Truck

A vehicle used by companies to transport goods from one location to another.

Company Logo

A graphic mark, emblem, or symbol used by enterprises to aid and promote public identification and recognition.

Motor Vehicle Licence

A document granting the legal permission to drive a motor vehicle on public roads.

Operating Lease

A leasing agreement allowing a lessee to use an asset, but the lease does not transfer ownership of the asset to the lessee.