In Figure 17.3 where the CCP is used, suppose that half of the transactions between A and
Question:
In Figure 17.3 where the CCP is used, suppose that half of the transactions between A and B that are represented by the solid line are moved to the CCP.
What effect does this have on
(a) the average exposure of the three parties including their exposures to the CCP and
(b) the average exposure of the three parties excluding their exposures to the CCP?
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