In a Credit Forward Contract Transaction

question 38

Multiple Choice

In a credit forward contract transaction

• A)the credit forward buyer is the lender who is trying to hedge the loan.
• B)the credit forward seller is the lender who is trying to hedge the loan.
• C)the credit forward buyer will pay the credit forward seller if the credit spread at the maturity of the forward contract is less than at the initiation of the contract.
• D)the credit forward seller will pay the credit forward buyer if the credit spread at the maturity of the forward contract is greater than at the initiation of the contract.

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Definitions:

Cracks Per Bar

A metric specifically used to quantify the number of cracks identified in a single bar of material, often used in quality control and materials testing.

Standard Deviation

A measure of the dispersion or variability around the mean in a set of data, indicating how spread out the data points are.

Mode

The value or values that occur most frequently in a data set.

Skewed

A term describing a distribution that is asymmetric, leaning towards one side, either to the left or right, indicating a deviation from the normal distribution.