Question:medium
Which of the following is a key risk associated with forward contracts?
Which of the following is a key risk associated with forward contracts?
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Because forward contracts are private OTC agreements, they carry significant counterparty risk. If one party defaults, the other has no clearing house to protect them.
Updated On: Jun 22, 2026
- Market risk
- Regulatory risk
- Counterparty risk
- Currency risk
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Show Solution
The Correct Option is C
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