Financial Risk Manager Part 2
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Which of the following is true about the impact of wrong-way risk (WWR) on central counterparties (CCPs)?
A
Larger dealers represent right-way risk.
B
CCPs are somewhat immune to wrong-way risk.
C
CCPs are at risk of wrong-way risk (WWR) because they disassociate credit quality and Exposure.
D
Their method of collateral acceptance promotes right-way risk with respect to posted Collateral.