A bank enters a swap with a gas-producing company where the company pays a fixed price for

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A bank enters a swap with a gas-producing company where the company pays a fixed price for gas. Discuss whether this type of trade is a wrong-way trade or not.

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Value at Risk The New Benchmark for Managing Financial Risk

ISBN: 978-0071464956

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Authors: Philippe Jorion

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Question Posted: May 03, 2016 02:25 AM

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A bank enters a swap with a gas-producing company where the company pays a fixed price for

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Such trade is indeed a wrongway trade The company produces gas so ...View the full answer

Value at Risk The New Benchmark for Managing Financial Risk

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