CVA Is Concerned with

question 18

Multiple Choice

CVA is concerned with

• A) The cost of funding initial margin
• B) The cost of funding variation margin
• C) The cost of regulatory capital
• D) None of the above

---

Definitions:

Direct Correlation

A relationship where an increase in one variable is associated with an increase in another, indicating a positive linear relationship.

Scatterplot

A graphical representation using dots to show the relationship between two quantitative variables.

Variables

Elements or characteristics within a study or research that can change and potentially impact the study's results.

Negative Correlation

A relationship between two variables whereby they move in opposite directions.