Which of the following is INCORRECT regarding the conversion of Off-Balance Sheet (OBS) values into On-balance-sheet credit equivalent amounts?

a.

The credit equivalent amount itself is divided into a potential exposure element and a current exposure element

b.

The potential exposure component reflects the credit risk if the counterparty to the contract defaults today

c.

Current exposure reflects the cost of replacing a contract if a counterparty defaults in the future

d.

All of above three options

e.

Only option B and option C