What does netting permit a firm to do?
A. Pay only the losses due to unfavorable market prices.
B. Net all of its gains against all of its losses.
C. Net its transaction with a given counterparty against each other.
D. Pay the losses only if the counterpart defaults.?
Answer：C
Netting reduces actual payment to the net between what is due to a counterparty and what is due from the counterparty.

 
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