问题如下:
Hill refers his friend, Richard Morrison, the former CEO of Masury Bridge and Iron (MBI), to Keller to discuss his wealth goals.
Keller realizes that the Morrisons’ decision making is influenced by psychological considerations and decides to use a goal-based planning approach. Keller constructs the table below to simplify the discussion at their next scheduled meeting.
Table:Morrison Family Wealth Distribution
Keller and Richard Morrison discuss several hedging techniques. To lock-in a floor price and retain unlimited upside potential, Morrison decided to use a protective put position.
Explain one drawback of this hedging strategy.
选项: 解释:
There are two potential drawbacks with this hedging strategy. The strategy requires an outof- pocket expenditure to purchase the put options, which can be significant depending on a number of factors, including the volatility of the stock, the strike price, and maturity. Another potential drawback is the credit risk of the counterparty. Counterparty risk is greater for an over-the-counter (OTC) derivative because the investor incurs the credit risk of a single counterparty. With respect to exchange-traded instruments, because a clearinghouse is the counterparty and guarantees the instrument, the investor incurs significantly less counterparty risk.
题目没有说这个是OTC交易,但是答案说了要考虑PUT 可能是OTC交易的可能。
如果碰到类似的题目,是不是缺陷都可以回答一个OTC缺点?
是不是所有的衍生品,只要没有指明,就可能是OTC产生的?