At a Given Point in Time, the Price of a Credit

question 55

Multiple Choice

At a given point in time, the price of a credit default swap contract should be ________ related to the default risk of the securities covered by the contract. For a given set of securities that are covered by a credit default swap, the price of the contract should be _______ related to the default risk as it changes over time.

• A)​p ositively; positively
• B)positively; inversely
• C)Inversely; positively
• D)inversely; inversely

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Definitions:

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