The Compensation from a CDS Can Come from

question 98

Multiple Choice

The compensation from a CDS can come from

• A)the CDS holder delivering the defaulted bond to the CDS issuer in return for the bond's par value.
• B)the CDS issuer paying the swap holder the difference between the par value of the bond and the bond's market price.
• C)the federal government paying off on the insurance claim.
• D)the CDS holder delivering the defaulted bond to the CDS issuer in return for the bond's par value and the CDS issuer paying the swap holder the difference between the par value of the bond and the bond's market price.
• E)None of the options

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Definitions:

Teratogens

Environmental agents that can cause birth defects or developmental malformations if exposed to a fetus.

Prenatal Exposure

The exposure of an unborn child to substances, conditions, or behaviors that could affect development or health outcomes.

Cocaine

A powerful stimulant drug extracted from the leaves of the coca plant, often used recreationally and known for its potential for addiction.

Heroin

An illegal opioid drug known for its highly addictive properties and potential for abuse.