If a Swap Is Effectively Terminated by Entering into the Opposite

question 51

True/False

If a swap is effectively terminated by entering into the opposite swap with another counterparty,the credit risk will be eliminated.

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Definitions:

Dilemma

A situation requiring a choice between equally undesirable alternatives or presenting a challenging problem with no clear solution.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Constituents

Individuals or groups represented by an elected official or are part of a larger body or organization.

Characterizations

Descriptions or portrayals of characters, situations, or phenomena, highlighting distinctive traits or features.