Netting permits a firm to?
A)subtract losses from price increases from losses from price decreases
B)net its transactions with a given counterparty against each other
C)net all of its gains against all of its losses
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Netting allows a firm to offset its transactions with a specific counterparty, reducing the number of transactions and the associated costs and risks.

Netting Permits a Firm To