A USInsurance Company Issued a Guarantee Against Default to a German

Multiple Choice

A U.S.insurance company issued a guarantee against default to a German bank.The German bank invested in U.S.mortgaged-backed securities.The U.S.insurer promised that if the issuer of the mortgaged-backed securities defaulted,the insurer would pay the German bank for the loss.The guarantee the U.S.insurer provided is called a(n)

A) insurance option.
B) credit default swap.
C) catastrophe put option.
D) catastrophe bond.