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- Which payback method has a profit element?a. Traditional paybackb. Bailout paybackc. Discounted paybackd. Payback reciprocalCounterparty credit risk is a function of the probability of default, exposure at default, and loss given default. Assuming that the individual exposure at default with a counterparty is fixed, which of the following statements is correct? A. The probability of default can be mitigated by collateral, and exposure at default can be mitigated by netting. B. The probability of default can be mitigated by netting, and exposure at default can be mitigated by collateral. C. Loss given default can be mitigated by collateral, and exposure at default can be mitigated by netting. D. Loss given default can be mitigated by netting, and exposure at default can be mitigated by collateral.Which broadly ranks credit default risk from lowest to highest? Conforming, CRA, subprime CRA, conforming, subprime Conforming, subprime, CRA CRA, conforming, Alt A