Free ICBRR Exam Braindumps (page: 38)

The exercise for an American type option prior to expiration day is virtually certain in the following case:

Over a long period of time DeltaBank has amassed a large equity option position.
Which of the following risks should be considered in this transaction?

I) Counterparty risk on long OTC option positions
II) Counterparty risk on short OTC option positions
III) Counterparty risk on long exchange-traded option positions
IV) Counterparty risk on short exchange-traded option positions

Which one of the following four statements regarding commodity exchanges is INCORRECT?

Which one of the following four physical commodities markets has the right combination of characteristics that generally allows short selling in the market, without making the short- selling transaction prohibitively expensive?