Question
Suppose a risk manager is trying to figure out which trade has the greatest impact on a counterparty's CVA. The manager would use: A. Incremental
Suppose a risk manager is trying to figure out which trade has the greatest impact on a counterparty's CVA. The manager would use:
A. Incremental CVA. Because it accounts for the change in CVA once the new trade is priced, accounting for netting.
B. Marginal CVA. Because he could break down netted trades into trade level contributions.
C. Incremental CVA. Because he could break down netted trades into trade level contributions
D. Marginal CVA Because it accounts for the change in CVA once the new trade is priced, accounting for netting.
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Introduction To Personal Finance Beginning Your Financial Journey
Authors: Lance Palmer, John E. Grable
2nd Edition
1119797063, 978-1119797067
