Which of the following statements regarding early termination of a forward contract is TRUE()
A: There is no way to terminate a forward contract early.
B: A party who enters into an offsetting contract to terminate has no risk.
C: Early termination through an offsetting transaction with the original counterparty eliminates default risk.
A: There is no way to terminate a forward contract early.
B: A party who enters into an offsetting contract to terminate has no risk.
C: Early termination through an offsetting transaction with the original counterparty eliminates default risk.
举一反三
- Which of the following statements regarding early termination of a forward contract is most accurate A: A party who enters into an offsetting contract to terminate has no risk. B: A party who terminates a forward contract early must make a cash payment. C: Early termination through an offsetting transaction with the original counterparty eliminates default risk.
- The consequence of a force majeure event on the contract are ( ). A: Suspension or termination of the contract B: Renewal or cancellation of the contract C: Revision or suspension of the contract D: Reclassification or termination of the contract
- Which of the following item is CORRECT about termination? A: Convenience termination provisions address the defaults of G B: Default termination provisions refer to the owner’s termination without disclosing reasons. C: The owner can involve the third party to complete the work if the original contract is terminated. D: Provisions dealing with payment result from termination is not critical because GC and the owner can always bargain.
- Which of the following is NOT a risk factor for a country's risk premium（） A: Business risk. B: Financial risk. C: Technology risk.
- Which of the following statements regarding a country risk premium is TRUE A: Country risk arises from expected economic and political events. B: Firms in different countries assume significantly different financial risk. C: Exchange rate risk is relatively small and can be ignored.