What is the risk of dealing through an agent with an unknown principal?
A) You may not be able to ensure that your firm can a
B) You may not be able to net your exposure in an ins
C) You may not be able to net your exposure for capit
D) All of the above.

Question

Quizplus · Accepted Answer

Dealing through an agent with an unknown principal carries several risks, including uncertainty surrounding the firm's ability to fulfill its obligations, limited ability to net exposures in an insolvency scenario, and difficulty in netting exposures for capital requirements. Therefore, all of the above options are the best choice.

What Is the Risk of Dealing Through an Agent with an Unknown