In the Lehman Bankruptcy the Payoff to People Who Had

question 13

Multiple Choice

In the Lehman bankruptcy the payoff to people who had bought CDS protection was 91.375% of the notional principal.How was this determined?

• A) By calculation of the cheapest-to-deliver bond
• B) By an auction process
• C) By a calculation agent
• D) By Lehman's liquidators

---

Definitions:

Two-dimensional Framework

An analytical model that uses two variables or axes to explore or map complex relationships or systems.

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient way to minimize negative effects and potentially gain positive outcomes.

Productive Aspects

Elements or characteristics that contribute to the efficiency or effectiveness of a process, task, or system.

Mutual Adjustment

A process in negotiation where both parties make concessions or changes to their positions to reach a mutually acceptable agreement.