Which of the following methods is not used to reduce credit risk?
A)delta-gamma-vega hedging
B)collateral
C)marking to market
D)limiting the amount of business you do with a party
E)none of the above

Question

Quizplus · Accepted Answer

Delta-gamma-vega hedging is a risk management strategy used in options trading to manage the risk of changes in the prices of the underlying assets. It is not specifically used to reduce credit risk. Collateral, marking to market, and limiting the amount of business with a party are all methods commonly used to reduce credit risk. Therefore, the correct answer is A, delta-gamma-vega hedging.

Which of the Following Methods Is Not Used to Reduce