You Are the Buyer of Protection in a Credit Default

question 441

Multiple Choice

You are the buyer of protection in a credit default swap. All other things being equal your counterparty credit risk is increasing if:

• A) the credit spread is decreasing
• B) the credit spread is decreasing and recovery rate is increasing
• C) the credit spread is increasing
• D) the recovery rate is increasing

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Empirically-supported Treatments

Treatments that have been scientifically tested and proven effective through empirical research, often contrasted with approaches that lack a solid evidence base.

Psychiatric Disorders

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