Selling a forward contract to the counterparty
Assignment:
Which of the following two transactions increases counterparty credit exposure?
I. Selling a forward contract to the counterparty
II. Selling a call option to the counterparty
a. I only
b. II only
c. Both
d. Neither
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Which of the following two transactions increases counterparty credit exposure? Selling a forward contract to the counterparty.
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