23-46 One advantage of caps,collars,and floors is that because they are exchange-traded options there is no counterparty risk present in the transactions.

Name: 23-46 One advantage of caps,collars,and floors is that because they are exchange-traded options there is no counterparty risk present in the transactions.
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Quizplus · Accepted Answer

Caps, collars, and floors are typically over-the-counter (OTC) derivatives, not exchange-traded options, and therefore do involve counterparty risk.

23-46 One Advantage of Caps,collars,and Floors Is That Because They