Multiple Choice
Which of the following statements about Credit Default Swaps (CDS) is correct?
A) CDS are used to recover funds from defaulted swap counterparties.
B) CDS provide protection against specified credit events to the party receiving the CDS premium payments.
C) CDS provide protection against the default of the trade counterparty that buys the CDS.
D) CDS provide compensation to the protection buyer, should a specified credit event occur to a third party entity.
Correct Answer:
Verified
Correct Answer:
Verified
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