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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.
Reliance General Insurance has raised _________ by issuing shares to parent Reliance Capital, which will help the company accelerate growth & aims to ex...
Kalpathi Ratholsavam festival is celebrated in which state?
Which among the following has won the best Music Original Song?
________ state railway station has been renamed as ‘Patalpani Railway Station’ ?
'Race to Zero' campaign, recently seen in the news, is
Which Indian state recently passed the Right to Health (RTH) Bill, and what does the bill entail?
Which of the following received the Best Actress award at the 70th National Film Awards?
Which country was recently welcomed as the fifth member of the Colombo Security Conclave (CSC)?
What key aspects are included in the expansion of the Digital India initiative as approved by the Union Cabinet?
Who won the Australian Grand Prix 2022 in Melbourne, Victoria?