A Disgruntled Customer Claims That He Should Not Have to Settle

question 24

Multiple Choice

A disgruntled customer claims that he should not have to settle an FRA with you because it is really just a wager. What type of risk are you exposed to?

• A) Credit risk
• B) Legal risk
• C) Settlement risk
• D) Basis risk

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Definitions:

Ethical Decision Making

Ethical decision making involves choosing actions that are morally right and reflect the ethical standards of an individual or organization.

Decision-Making Principles

Guidelines or criteria used to make choices among alternatives.

Determination of Parties

The process of identifying the entities or individuals involved in an agreement, conflict, or legal case.

Ethical Intensity

The magnitude of ethical concern perceived in a situation, influenced by factors like potential harm, social pressure, and probability of effect.