In a One-Year Forward Contract on a CDS That Will

question 9

Multiple Choice

In a one-year forward contract on a CDS that will last five years, what happens if there is a default during the first year? choose one)

• A) There is a payoff to the forward protection buyer at the time of default
• B) There is a payoff to the forward protection buyer at the end of one year
• C) There is a payoff to the forward protection buyer at the end of six years
• D) The contract ceases to exist

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Definitions:

Consumer Judgments

The evaluations and assessments made by consumers about products or services at the point of decision-making.

Consumer Feelings

Emotional responses from consumers towards a product, service, brand, or marketing message, influencing their buying behavior.

Brand Awareness

The level of consumer awareness and understanding concerning the unique features or brand identity of certain goods or services.

Consumer Responses

The reactions or feedback of consumers towards a product, service, or a company's marketing strategies.