Explain why a bank is subject to credit risk when it enters into two offsetting swap contracts.

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Question Posted: Jan 20, 2016 08:51 AM

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Explain why a bank is subject to credit risk when it enters into two offsetting swap contracts.

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At the start of the swap both contracts have a value of approximately zero As time passes ...View the full answer

Fundamentals of Futures and Options Markets

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