Knowee
Questions
Features
Study Tools

When we say a derivative contract trades Over the Counter (OTC) what does that mean? Would a company prefer OTC? Please explain in your own words.

Question

When we say a derivative contract trades Over the Counter (OTC) what does that mean?

Would a company prefer OTC? Please explain in your own words.

🧐 Not the exact question you are looking for?Go ask a question

Solution

When we say a derivative contract trades Over the Counter (OTC), it means that the contract is traded directly between two parties, without going through an exchange or other intermediaries. This is typically done through a dealer network. OTC markets are less transparent than exchanges and are subj

*********************************************** ************************************************ ************************************************ ************************************************ ************************************************ ************************************************ ************************************************ ************************************************ *********

This problem has been solved

Similar Questions

______means the act of a clearing corporation interposing itself between both parties of every trade, being the legal counterparty to both

__________ provides a transaction platform where buyers and sellers can meet to transact in securities.(1.0 Marks)Stock ExchangeASEBIBDepositoriesCMutual Funds

Which of the following is NOT an example of a counter delivery action?Do not junkDo not alterDo not hold or alterDo not hold

The exchange rates quoted by an authorised dealer to its customers are known as-Select one:a.Authorised ratesb.Commercial ratesc.Merchant ratesd.Indirect rates

A firm offer is an offer made in writing by a merchant that will be irrevocable for a period not longer than ________

1/1

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.