Which of the Following Statements About the Counterparty to a Risk

question 37

Multiple Choice

Which of the following statements about the counterparty to a risk management derivatives contract is correct?

• A) The counterparty has the same expectations about future price movements as the risk manager.
• B) The counterparty charges a fixed fee of $5 per contract.
• C) The counterparty is in all likelihood a speculator.
• D) All of the above are correct.

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Definitions:

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