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To effectively reduce its overall counterparty risk to almost zero, which strategy would be most suitable for a derivative trading firm that specializes in rare commodities, given that the firm, along with a few other major firms, holds substantial notional outstanding contracts with one another?
A
Ensuring that sufficient collateral is posted by counterparties
B
Diversifying among counterparties
C
Cross-product netting on a single counterparty basis
D
Purchasing credit derivatives, such as credit default swaps