Measure is not used for managing credit risk

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Reference no: EM132036972

1. You're the CFO of a large US-based bank. Your bank will need to make a payment denominated in yen three months from now. Which of the following positions could you take to hedge your position?

Purchase a futures contracts on dollars that matures in three months.

Sell a futures contract on yen that matures in three months.

Buy a futures contract on yen that matures in three months.

None of the above

2. Which of the following measure is NOT used for managing credit risk

a. Netting arrangements

b. Margin and collateral requirements

c. Capital gain tax

d. Periodic Settlements

Reference no: EM132036972

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