Question
Which of the following instrument is subject to counter
party risk?Solution
Forwards are subject to counterparty risk because they are private contracts between two parties, and there is a risk that one party may default on their obligations. In contrast, futures contracts (option B) are typically traded on organized exchanges with a clearinghouse acting as the counterparty to both parties, reducing counterparty risk. Options (option C) also involve counterparty risk, but it is generally lower compared to forwards because options are standardized and often traded on organized exchanges with similar clearing mechanisms as futures contracts.
To reduce fertilizer use govt has decreased urea bag size from 50 kg to __ kg.
Which of the following breeding methods involves mating between closely related animals such as brother-sister or parent-offspring?
Who among the following is popularly known as the Father of Agricultural Demonstration?
Which of the following method is most effective in conferring disease resistance among distantly related species?
Sprinkler irrigation system remains a better choice for irrigating areas that have
According to Thomas Robert Malthus, population tends to grow in
CIBRC is responsible for registration of
The first stable product of C3 pathway is
Under a single cropping pattern, it is normally recommended to consider __hp of tractor for every___ hectares of land.
Large tractors have ……………….. hp power