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3I0-012 · Question #175

3I0-012 Question #175: Real Exam Question with Answer & Explanation

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Question

An important reason for trading a futures contract rather than an FRA is:

Options

  • AThe expense of settling an FRA
  • BThe reduced counterparty risk on a futures exchange
  • CThe reduced basis risk on futures
  • DThe superior interest rate risk on FRAs

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