I am sorry maybe the title of my post was misleading!
I meant the question in the Part-3 Questions. The whole question not just (iii)!
it says in the original exposure method, the factor for conversion is chosen from depending on the original term. But isnt the 2% in the Euro swap based on outstanding term? Or have I misunderstood the whole process?
Last edited by a moderator: Dec 6, 2014