Chartered Financial Analyst Level 2
Get started today
Ultimate access to all questions.
Comments
Loading comments...
Ultimate access to all questions.
With respect to CDS:
A
the protection buyer assumes counterparty risk with respect to the protection seller.
B
the protection buyer makes a series of periodic, variable payments to the protection seller.
C
the change in value of the CDS contract fully offsets the change in the value of the underlying.