Which of the following statements regarding the International Swaps and
DerivativesAssociation (ISDA) Master Agreement is false?
A) The ISDAMasterAgreement is a contract between two parties that governs
derivative transactions and credit controls.
B) An ISDAMasterAgreement is prepared for every derivatives transaction that
occurs between two parties.
C) The ISDAMasterAgreement forms a single contract under which multiple
derivative contracts can be managed.
D) The ISDAMasterAgreement specifies termination events that each pair of
counterparties must accept.
解析：An agreement is not prepared for every transactions, rather the ISDAMaster
Agreement forms a single contract under which multiple derivative contracts can
Assume a sovereign bond has a haircut of 5% and is used for a collateral call
of $100,000. What amount is credited if a $100,000 bond is submitted, and what
amount of bond is needed for $100,000 to be credited, respectively?
A) $100,000; $106,263
B) $95,000; $100,000
C) $95,000; $105,263
D) $105,263; $95,000
解析：Ahaircut is essentially a discount to the value of posted collateral. In
other words, a haircut of x% means that for every unit of collateral posted,
only (1–x)% of credit will be given. This credit is also referred to as
valuation percentage. If a particular sovereign bond has a haircut of 5% and a
collateral call of $100,000 is made, only 95% of the collateral’s value is
credited for collateral purposes. That is, in order to satisfy a $100,000
collateral call, $105,263 ($100,000/0.95) of the sovereign bond must be