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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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Q-73. The exhibit below presents a summary of bilateral mark-to-market (MtM) trades for four counterparties. If netting agreements exist between all pairs of counterparties shown, what is the correct order of net exposure per counterparty, from lowest to highest?

MtM Trades for Four Counterparties (USD million)

Opposing Counterparty
B
Counterparty ATrades with positive MtM10
Trades with negative MtM-10
A
Counterparty BTrades with positive MtM10
Trades with negative MtM-10
A
Counterparty CTrades with positive MtM5
Trades with negative MtM-10
A
Counterparty DTrades with positive MtM10
Trades with negative MtM-1

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