Under What Circumstances Are Banks Allowed to "Park" Deals or Positions

question 534

Multiple Choice

Under what circumstances are banks allowed to "park" deals or positions with a counterparty?

• A) Not under any circumstances, since the "parking" of deals or positions should be prohibited
• B) in conditions of exceptional volatility
• C) only if the two counterparties to the deal agree
• D) only if "parking" of deals or positions has been approved by senior management

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