A Digital Default Swap Is a Contract That Is Distinct

question 23

Multiple Choice

A digital default swap is a contract that is distinct from a credit default swap in that

• A)It pays nothing is no credit event occurs.
• B)It pays a fixed amount if a credit event occurs.
• C)It has a single premium upfront instead of periodic premium payments.
• D)Premium payments are only due if a credit event occurs.

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Definitions:

Supplier Reliability

The consistency and dependability of a supplier in providing products or services that meet agreed specifications and delivery schedules.

Order Placed

The action taken by a buyer to request goods or services from a supplier.

Aggregate Planning

A process in procurement and production planning aimed at determining necessary capacity and resources to meet anticipated demand.

Transforms Forecasts

Involves using mathematical transformations on historical data to make future predictions.