Greatest potential credit exposure


Which of the following will have the greatest potential credit exposure?

A. Long 3,000 ounces of gold for delivery in one year

B. Long 3,000 ounces of gold for delivery in two years

C. Short 3,000 ounces of gold for delivery in two years

D. Selling an at-the-money call option on 10,000 ounces of gold for deliveryin two years

Solution Preview :

Prepared by a verified Expert
Finance Basics: Greatest potential credit exposure
Reference No:- TGS0673763

Now Priced at $2 (50% Discount)

Recommended (91%)

Rated (4.3/5)