Pre-settlement risk is most relevant in which of the following markets? A. Spot market B. Futures market C. Derivatives market D. Real estate market
Question
Solution 1
Pre-settlement risk is most relevant in the Derivatives market. So, the answer is C. Derivatives market.
Here's why:
Pre-settlement risk, also known as replacement risk, is the risk that a counterparty in a financial contract will not live up to their contractual obligations before the contract's Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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