Which of the following accurately describes a credit derivative a The buyer and seller of a credit derivative are provided with a credit guarantee by the clearinghouse b At the initiation of the contract of a credit derivative, the buyer and seller provide a performance bond c In a credit derivative, the seller provides the buyer with protection against credit risk of a third party

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

Which of the following accurately describes a credit derivative? a. The buyer and seller of a credit derivative are provided with a credit guarantee by

Which of the following accurately describes a credit derivative?

The buyer and seller of a credit derivative are provided with a credit guarantee by the clearinghouse.

At the initiation of the contract of a credit derivative, the buyer and seller provide a performance bond.

In a credit derivative, the seller provides the buyer with protection against credit risk of a third party.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Take The Trade A Floor Trade

Authors: Tony Wilson

1st Edition

979-8218195458

More Books

Students also viewed these Finance questions

Question

a. If the industry is perfectly competitive, what will be the total quantity produced? At what price?

Answered: 1 week ago

Question

★★★★★

The transactions completed by AM Express Company during March 2016, the first month of the fiscal year, were as follows: Mar. 1. Issued Check No. 205 for March rent, $2,450. 2. Purchased a vehicle on...

Answered: 1 week ago

Question

★★★★★

Which of the following accurately describes a credit derivative? a. The buyer and seller of a credit derivative are provided with a credit guarantee by the clearinghouse. b. At the initiation of the...

Answered: 1 week ago

Question

★★★★★

Blossom Corporation just purchased computing equipment for $37,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth...

Answered: 1 week ago

Question

★★★★★

The potential labour hours available for a large energy complex were found to be 5.4 million hours. The non-productive activities expressed in thousands of labour hours were: 360 for holidays and...

Answered: 1 week ago

Question

★★★★★

use the APR formula to find the APR. Round to the nearest hundredth of a percent. &% Miguel purchased a hot tub costing $ by taking out an installment loan. He made a down payment of $1,300 and...

Answered: 1 week ago

Question

★★★★★

ABC Corp. has offered1.5 million shares having a total market value of $9 million for XYZ Corp. After the merger is announced, shares in ABC trade for $5.5 each. If ABC is condent about XYZ's value,...

Answered: 1 week ago

Question

★★★★★

Howard Saari was employed by Smith Barney, Harris Upham & Co., Inc., as an account executive beginning in July 1988. He alleges that his work was satisfactory at all times. According to Saari\'s...

Answered: 1 week ago

Question

★★★★★

Honey Corporation produces a single product. All materials are added at the beginning of production. On January 1, 2014, 10,000 units of the product were in process in the Refining Department, the...

Answered: 1 week ago

Previous Question Next Question