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All main topics / Finance & Investment / Derivatives / Derivatives
The reference entity in a credit default swap is
A.The buyer of protection
B.The seller of protection
C.The company or country whose default is being insured against
D.None of the above
Answer: C
In a credit default swap the buyer of protection pays a CDS spread to the seller of protection and the protection seller has to make a payoff if there is a default by the reference entity.
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Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015




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