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It is the likelihood or probability that one of those involved in a transaction might default on its contractual obligations. This risk can exist in credit, investment, and trading transactions, especially in over-the-counter (OTC) markets. Financial investment products such as stocks, options, bonds, and derivatives carry this risk. Find the correct answer. a. Liquidity Risk. b. Counterparty Risk. c. Political Risk. d. Interest Rate Risk.
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