- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 2. Forward Commitment and Contingent Claim Features and Instruments
- Subject 3. Credit Derivatives
CFA Practice Question
Which of the following parties provide the credit protection in the credit default swap?
B. CDS seller
C. Exchange
A. CDS buyer
B. CDS seller
C. Exchange
Correct Answer: B
The CDS seller provides the credit protection and the seller receives the CDS spread as a premium for it from the CDS buyer.
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