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4. Acme Financial Incorporated has an outstanding derivatives contract with its counterparty. Currently, neither posts collateral, but they mutually agree to a modification such that
4. Acme Financial Incorporated has an outstanding derivatives contract with its counterparty. Currently, neither posts collateral, but they mutually agree to a modification such that the revised contract now includes a bilateral collateral arrangement. Which risk has Acme reduced?
A. Acme reduced counterparty risk
B. Acme reduced operational risk
C. Acme reduced market/liquidity risk
D. All of the above
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