The effect to an FI of default by the counterparty to a derivative contract is LEAST serious with
A)options contracts.
B)futures contracts.
C)swap agreements.
D)forward contracts.

Question

Quizplus · Accepted Answer

Futures contracts are standardized and traded on exchanges, which typically have clearinghouses that guarantee the performance of the contracts, reducing the risk of default by the counterparty.

The Effect to an FI of Default by the Counterparty