Explain the meaning of netting. Suppose no collateral is posted. Why does a netting agreement usually reduce

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Explain the meaning of "netting." Suppose no collateral is posted. Why does a netting agreement usually reduce credit risks to both sides. Under what circumstances does netting have no effect on credit risk.

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Question Posted: Feb 12, 2018 11:11 AM

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Explain the meaning of netting. Suppose no collateral is posted. Why does a netting agreement usually reduce

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A netting agreement states that all transactions are considered to be a single transaction in ...View the full answer

Options Futures and Other Derivatives

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