Which of the following is true
A) FVA is always positive
B) FVA is always negative
C) FVA for a transaction is initially zero
D) None of the above

Name: Which of the following is true A) FVA is always positive B) FVA is always negative C) FVA for a transaction is initially zero D) None of the above
Brand: Quizplus
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Question

Quizplus · Accepted Answer

FVA can be positive or negative.For example the incremental FVA from the uncollateralized sale of an option is negative whereas that from the purchase of an option is positive.

Which of the Following Is True