In a CDS with a Notional Principal of $100 Million

question 10

Multiple Choice

In a CDS with a notional principal of $100 million the reference entity defaults.What is the payoff to the buyer of protection when the recovery rate is 30%?

• A) $100 million
• B) $30 million
• C) $130 million
• D) $70 million

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Definitions:

Repressed Feelings

Emotions or thoughts that have been unconsciously hidden or suppressed in one's mind, often because they are deemed unacceptable or painful to acknowledge.

Daily Habits

are routines or practices that an individual engages in on a regular basis, contributing to their lifestyle and well-being.

Dress

Clothing, typically a one-piece garment for women or girls, that covers the body and extends down over the legs.

Friends

Individuals with whom one shares a bond of mutual affection, typically exclusive of sexual or family relations.