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Which of the following carry greater counterparty risk: a forward contract on a 10 year...

Which of the following carry greater counterparty risk: a forward contract on a 10 year note, or a commercial paper carrying a AA credit rating with identicalmaturity and notional?

A.

The forward contract has greater credit risk as its future gains are unknown

B.

Credit risk can not be compared in these terms

C.

They both carry the same credit risk

D.

The commercial paper has greater credit risk as the entire notional is outstanding

PRMIA 8010 Summary

  • Vendor: PRMIA
  • Product: 8010
  • Update on: Jul 29, 2025
  • Questions: 240
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