The calculation of the risk-weighted asset values of OBS market contracts
A) nearly always equals zero because the exchange over which the contract initially traded assumes all of the risk.
B) requires multiplication of the credit equivalent amounts by the appropriate risk weights.
C) requires the calculation of a conversion factor to create credit equivalent amounts.
D) All of the options.
E) requires multiplication of the credit equivalent amounts by the appropriate risk weights and the calculation of a conversion factor to create credit equivalent amounts.
Correct Answer:
Verified
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