Unlike a Single-Name Credit Default Swap, the Preferred Settlement Term

question 3

Essay

Unlike a single-name credit default swap, the preferred settlement term for a basket default swap is cash settlement. Describe this cash settlement in terms of the termination value.

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Definitions:

Speech Event

A specific instance in which communication occurs, structured by conventions and expectations of the participants and the context.

Speech Community

In Hymes’s ethnography of communication, a group of people who share a common language that differentiates them from other groups—for example, a group of communication majors.

Speech Activity

The dynamic engagement in verbal expression and communication.

Ethnographic Research

A qualitative research method focused on studying cultures and communities through direct observation and participation.