n NISM Certifications
NSM General NISM
Medium

'Counterparty Risk' in derivatives trading refers to:

Practice question from NISM Series IV - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The risk that the other party will default on the contract (Correct)

    Correct answer

  2. B

    The risk of market price fluctuations

  3. C

    The risk of interest rate changes

  4. D

    The risk of inflation

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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