Question: Answer the below questions. (a) What is counterparty risk? (b) Why do both the buyer and seller of a forward contract face counterparty risk?

Answer the below questions.
(a) What is counterparty risk?
(b) Why do both the buyer and seller of a forward contract face counterparty risk?

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a Counterparty risk is the risk that the other party to the transaction will fail to ... View full answer

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