Question Completion Status: Save and Submit QUESTION 1 15 points Saved You are c

Question

Question Completion Status: Save and Submit QUESTION 1 15 points Saved You are concened about holding the credit risk and want to use a credit default swap to remove the 10 billion to Trump Inc. credit risk from your loan to Trump Inc. Which one of the following is true? You are the seller of the CDS You are the seller of credit risk protection. You will receive no up front cash payment. You will pay an upfront cash payment QUESTION 2 15 points Saved Of the loan made to Trump Inc. the party that takes the CDS as an investment is none of the other responses are true e the seller of credit risk protection the issuer of the CDS the buyer of credit risk protection 416 PM

Explanation / Answer

1. c. A credit default swap has to be bought by me, to mitigate any loss in case of default by Trump.Inc. Here you don't receive any cash upfront.

2. d. CDS buyer is the buyer of credit risk protection

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.