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3I0-012 · Question #201

3I0-012 Question #201: Real Exam Question with Answer & Explanation

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Question

You are the buyer of a receiver's swap. All other things being equal your counterparty risk is increasing if

Options

  • Athe swap curve is shifting downwards
  • Bthe swap curve is shifting upwards
  • Cswaption volatilities are decreasing
  • Dtime to expiry is becoming shorter

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