Bird Airways would use commodity swaps to protect against rising jet fuel prices. Which of the following

Question:

Bird Airways would use commodity swaps to protect against rising jet fuel prices. Which of the following statement(s) about the use of commodity swaps is/are correct?

(a) Bird Airways will sell a commodity swap to hedge the risk of rising jet fuel prices.

(b) Bird Airways will have counterparty credit exposure on commodity swap

a. Both statements

b. Neither statement

c. Statement

(a) only

d. Statement

(b) only

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