Since the credit crisis that started in 2007 which of the following have derivatives traders started to use as the risk-free rate for some transactions?
A)The Treasury rate
B)The LIBOR rate
C)The repo rate
D)The overnight indexed swap rate

Question

Quizplus · Accepted Answer

Since the credit crisis, many derivatives traders have turned to using the overnight indexed swap (OIS) rate as the risk-free rate for some transactions. This is because the OIS rate is considered to be a more accurate reflection of the unsecured interbank lending market than other rates, such as LIBOR, which were found to be manipulated during the crisis.

Since the Credit Crisis That Started in 2007 Which of the Following