ACI
3I0-012 · Question #453
Today, you sell GBP 5,000,000.00 to a customer against JPY for spot value. Tomorrow, the customer defaults. What is your exposure called?
The correct answer is A. Replacement risk. See the full explanation below for the reasoning.
Question
Today, you sell GBP 5,000,000.00 to a customer against JPY for spot value. Tomorrow, the customer defaults. What is your exposure called?
Options
- AReplacement risk
- BSettlement risk
- CLegal risk
- DBasis risk
How the community answered
(14 responses)- A79% (11)
- B14% (2)
- D7% (1)
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