15. Indicate which of the following statements about credit risk is (are) false, and explain why.

A. Because credit losses occur often, it is easy to assess the probability of a credit loss.

B. One element of credit risk is the possibility that the counterparty to a contract will default on an obligation to another (i.e., third) party.

C. Like the buyer of a European-style option, the buyer of an American-style option faces no current credit risk until the expiration of the option.