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NEW QUESTION: 1
Answer:
Explanation:
Explanation
References:
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NEW QUESTION: 2
Which of the following best describes a 'break clause ?
A. A break clause sets out the conditions under which the transaction will be terminated upon non-compliance with the ISDA MA
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C. A break clause gives either party to a transaction the right to terminate the transaction at market price at future date(s)
D. A break clause describes rights and obligations when the derivative contract is broken
Answer: C
Explanation:
Explanation
A break close, also called a 'mutual put', gives either party the right to terminate a transaction at market price at a given date, or dates in the future. These are usually availed of in longer dated transactions, eg 10 years and over. For example, a 15-year swap might have a mutual put in year 5, and every 2 years thereafter.
All other choices are incorrect.
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NEW QUESTION: 4
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