Which of the Following Is an Out-Of-The-Money Counterparty in the Derivative

question 84

Multiple Choice

Which of the following is an out-of-the-money counterparty in the derivative securities market?

• A)Counterparty in a loan commitment contract.
• B)FI that trades in securities prior to their actual issue.
• C)Counterparty that is currently at an advantage in terms of cash flows.
• D)FI that guarantees to underwrite the performance of the buyer of the guaranty.
• E)Counterparty that is currently at a disadvantage in terms of cash flows.