Which of the following is true for the risk-adjusted asset values of OBS-OTC traded derivative contracts?

a.

Credit equivalent amount reflects the risk that counterparty to derivatives contract will default in the future

b.

If the replacement cost is positive, this value is used as the measure of current exposure

c.

Banks must hold capital equal to 2 percent times the margin requirement on exchange

d.

If the contracts replacement cost is negative, then the potential exposure is set to zero