NACVA Exam CVA Topic 5 Question 40 Discussion

Actual exam question for NACVA's CVA exam

Question #: 40
Topic #: 5

It is highly unlikely, in formula approaches for setting the price in a buy-sell agreement, that the price established by a formula at the time of signing will be even close to the value of the interest at the time of triggering event, which could be many years later. For these reason analysts:

AHighly encourage the use of formulas in high-sell agreements

BHighly discourage the use of formulas in high-sell agreements

CAllow flexibility in approach

DDo not allow flexibility in approach

Show Suggested Answer

Suggested Answer: B

by Merissa at May 03, 2022, 09:37 PM

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