An agreement which has a linear payoff and is cleared through a Central Counter Party is...
An agreement which has a linear payoff and is cleared through a Central Counter Party is a:
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A. call option
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B. forward
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C. future
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D. CDO
Homework Answers
Both forward and futures contracts have a linear payoff, however, only futures contract is cleared through a Central Counter Party.
So the correct answer is C. future
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