NO.PZ2022123002000027
问题如下：
In 2014, Testa notified
Fournier that he anticipated taking a position in a plastics producer located
in India. Fournier warned him that the Indian rupee (INR) was a restricted
currency and that currency management would not be as simple as in the other
transactions handled previously. Fournier said that non-deliverable forwards (NDFs)
on the rupee were available, as they were for the currencies of other developing
countries. When asked how non-deliverable forwards differed from the contracts
they had used in the past, Fournier responded:
NDFs are cash settled in the non-controlled
currency of the currency pair,
NDFs have greater credit risk associated
with them than outright forward contracts because the central banks in most
developing countries are not as strong as they are in developed countries, and
the pricing of NDFs may differ from what is
expected on the basis of arbitrage conditions.
Which
of Fournier’s 2014 comments about non-deliverable forwards (NDFs) is least
accurate? The one concerning:
选项：
A.
pricing
B.
credit risk
C.
settlement
解释：
Correct Answer: B
B is correct.
Fournier’s statement regarding credit risk is incorrect. The credit risk does not
relate to the central bank of the developing country but, rather, the
counterparty risk faced in the contract. The credit risk underlying an NDF is
lower than an outright forward contract since the notional size of the contract
is not exchanged at settlement, but only the non-controlled currency amount by
which the notional size of the controlled currency has changed over the life of
the contract—that is, the change in the controlled currency times the notional
size converted to the non-controlled currency at the spot rate on the
settlement date.
A is incorrect.
C is incorrect. Fournier’s statement regarding settlement of NDFs is correct. Nondeliverable forwards exist in situations involving capital controls on one of the currencies. The controlled currency cannot be physically settled (i.e., not delivered or received), but instead it is cash settled in the non-controlled currency.
credit risk的解释能够中文翻译下，没有看懂
