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Long-Term Capital Management (LTCM) experienced financial difficulty in the late 1990s. Which of the following statements is false regarding their troubles?
A
The amount of their positions in swaps was very large, but due to offsetting positions, the amount of their risk was in theory very small.
B
LTCM required their investors to invest for three years, thereby increasing funding risk.
C
LTCM obtained financing through repurchase agreements at very favorable terms.
D
Due to the size of their positions, LTCM could not liquidate their assets without selling at large discounts.
