A CDS with a Number of Reference Entities Provides a Payoff

question 11

Multiple Choice

A CDS with a number of reference entities provides a payoff when any of the reference entities defaults. What is a name for this CDS?

• A) Binary CDS
• B) Add-up Basket CDS
• C) First-to-Default CDS
• D) n-to-Default CDS

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Definitions:

Static

describes something that does not change or move, often used in contrast to dynamic processes or structures.

Modern Social Theories

Contemporary theories in sociology that aim to understand how societal structures, patterns, and institutions interact with individual behaviors and consciousness.

Power

The ability or capacity to influence the behavior of others or the course of events, often through the possession of authority, strength, or resources.

Social Problems

Issues within a society that are widely recognized as being detrimental to the welfare of society members and are in need of remedy, such as inequality, poverty, and crime.