Contingent actions involve changes to an outstanding contract or agreement based on the occurrence of certain key events. One of the events below may trigger a termination of the outstanding contract   Group of answer choices One of the counter party obtains a loan from an international bank improving of a counterparty’s credit quality The marked-to-market value of an outstanding contract remains below a predetermined amount Credit rating of a counter party is downgraded to Caa1 by Moody’s

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
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Contingent actions involve changes to an outstanding contract or agreement based on the occurrence of certain key events. One of the events below may trigger a termination of the outstanding contract

 

Group of answer choices
One of the counter party obtains a loan from an international bank
improving of a counterparty’s credit quality
The marked-to-market value of an outstanding contract remains below a predetermined amount
Credit rating of a counter party is downgraded to Caa1 by Moody’s
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