CCM Derivatives Practice Questions - SEC Sri Lanka Certificate In Derivative Securities (CCM) Exam

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Which of the following is a key feature of exchange-traded derivatives that distinguishes them from over-the-counter (OTC) derivatives?

Standardized contract terms and central counterparty clearing Customizable specifications tailored to individual counterparty needs High degree of counterparty credit risk between buyer and seller Settlement terms negotiated directly between the trading parties

Correct Answer:

Standardized contract terms and central counterparty clearing

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