Counterparty credit risk assessment differs from traditional credit risk assessment in all of the following
features EXCEPT:

Floating rate bonds typically have ________ duration which means they have ________ sensitivity to interest
rate changes.

To estimate a partial change in option price, a risk manager will use the following formula:

According to Basel II what constitutes Tier 1 capital?

An options trader for a large institutional investor takes a long equity option position. Which of the following
risks need to be considered when taking this position?
I. All the risks of underlying equities
II. Perceived volatility changes
III. Future dividends yields
IV. Risk-free interest rates