ACI
3I0-012 · Question #308
You are the buyer of protection in a credit default swap. All other things being equal your counterparty credit risk is increasing if:
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Question
You are the buyer of protection in a credit default swap. All other things being equal your counterparty credit risk is increasing if:
Options
- Athe credit spread is decreasing
- Bthe credit spread is decreasing and recovery rate is increasing
- Cthe credit spread is increasing
- Dthe recovery rate is increasing
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