NO.PZ2020033003000050
问题如下：
Additional termination events (ATEs) or so-called break clauses are useful in giving the possibility for an institution to terminate a trade prior to their counterparty's creditworthiness deteriorating to the point of bankruptcy. But there is a concern of this clause -- banker’s paradox, what is the so called "banker’s paradox" about ?
选项：
A.The break clause is mandatory, The transaction will terminate at the date of the break clause.
B.The break clause is optional, One or both counterparties have the option to terminate the transaction at the pre-specified date.
C.The break clause is Trigger-based. A trigger (typically a ratings downgrade) must occur before the break clause may be exercised.
D.The break clause need to be exercised early before the counterparty's credit quality declines significantly，this action will naturally damage the relationship between the two parties.
解释：
D is correct.
考点：Modeling Netting Agreements
解析：ATE或者说 break clause允许一方在预测到对方信用变坏时以重置成本结束交易，并终止。
这个悖论指的是：如果提前终止的话可以避免损失，但是这也意味着在对方明面上的信用质量还没变差时破坏了双方的交易关系。但是如果终止过晚，对方信用质量已经变坏的话，自己又会遭受损失。
如题~
