ACI
3I0-013 · Question #128
3I0-013 Question #128: Real Exam Question with Answer & Explanation
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Question
In the weekend newspapers you read that one of your FX counterparties has gone into liquidation. You have no netting or close-out agreements in place with this counterparty and remember that you have one forward deal outstanding. What is the main risk affecting your bank?
Options
- AThe loss of the entire principal amount of the deal
- BThe"replacement risk", also known as"replacement-cost risk"
- CThe loss of the negative mark-to-market value of the deal
- DAs the deal is in the future, there is no impact on P&L
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