ACI
3I0-013 · Question #184
As far as interest rate swaps are concerned, which risk is reduced or eliminated when a close-out netting agreement is in place?
The correct answer is A. Replacement risk. See the full explanation below for the reasoning.
Question
As far as interest rate swaps are concerned, which risk is reduced or eliminated when a close-out netting agreement is in place?
Options
- AReplacement risk
- BVolatility risk
- CCommercial risk
- DMarket risk is reduced to a predefined amount
How the community answered
(26 responses)- A73% (19)
- B15% (4)
- C4% (1)
- D8% (2)
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