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.
Which of the following ports is located on the western coast of India?
The Rajgir Zoo is located in which of the following states?
GOI announced construction of an iconic cable stayed-cum-suspension bridge across which river(Oct)
Which Constitutional Amendment gave constitutional status to the Panchayati Raj Institutions?
Recently, _________ the founder of Wikileaks was released from a prison in the United Kingdom.
In which of the following Indian states does the southwest monsoon set first to give rainfall?
What is the revised economic growth forecast for India by the World Bank for FY 2024-25?
What is the primary goal of the Bima Sugam – Insurance Electronic Marketplace Regulations, 2024?
A, B, and C can do a piece of work in 6 days. If A alone can do this work in 36 days and B alone can do it in 12 days, then in how many days will C alon...
Which of the following statements is/are correct about the neighbouring countries of India?
(A) India supported Maldives in 2022 with a grant o...
