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4. Management of credit risk (counterparty risk) for exchange traded futures and futures traded in the OTC markets. Discuss the workings of the main

4. Management of credit risk (counterparty risk) for exchange traded futures and futures traded in the OTC markets. Discuss the workings of the main methods for mitigating (reducing) the risk of loss for an investor on the derivative transactions in case of default of the futures contract counterparty? (Hull, 2.4-5, 23.8) 10p

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