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3I0-012 · Question #636

3I0-012 Question #636: Real Exam Question with Answer & Explanation

The correct answer is D. All of the above.. See the full explanation below for the reasoning.

Question

What is the risk of dealing through an agent with an unknown principal?

Options

  • AYou may not be able to ensure that your firm can avoid suspicion of trading on non-public information or
  • BYou may not be able to net your exposure in an insolvency.
  • CYou may not be able to net your exposure for capital adequacy purposes.
  • DAll of the above.

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