A banks derivatives transactions with a counterparty are worth +$10 million to the bank and are cleared

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A bank’s derivatives transactions with a counterparty are worth +$10 million to the bank and are cleared bilaterally. The counterparty has posted $10 million of cash collateral.
What credit exposure does the bank have?

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Question Posted: Jan 20, 2016 08:45 AM

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A banks derivatives transactions with a counterparty are worth +$10 million to the bank and are cleared

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The counterparty may stop posting collateral and some time ...View the full answer

Fundamentals of Futures and Options Markets

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