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- 2014-2-27
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Cap/Floor Buyer/Seller stupid question
Could someone please simplify to me who is exposed to counterparty risk (buyer/seller) on interest rate derivatives (caps/floors)?
Q#3, Reading 62
A: “Once a fee for the interest rate floor is paid, the seller of an interest rate floor is not exposed to counterparty risk. Only the seller, not the buyer, must perform.”
My brain is so fried right now
Thanks |
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发表于 2013-4-3 01:17
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