_____ Which of the following is not a unique characteristic of forward-based derivative financial instruments?
A) Both on-balance-sheet risk and off-balance-sheet risk can exist simultaneously.
B) The market value can change quickly.
C) The market value can quickly change from a favorable position to an unfavorable position.
D) The market value can quickly change from an unfavorable position to a favorable position.
E) None of the above.
Correct Answer:
Verified
Q207: _ In a hedge of a firm
Q208: _ In a hedge of a firm
Q209: _ For an FX forward to qualify
Q210: _ For an FX forward to qualify
Q211: _ Which of the following is not
Q213: _ Which of the following is not
Q214: _ In a derivative, "off-balance-sheet risk" is
Q215: _ In a derivative, "on-balance-sheet risk" is
Q216: _ In a derivative, liquidity risk is
Q217: _ In an option-based derivative, the option
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents