- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 30. Credit Default Swaps
- Subject 4. Applications of CDS
CFA Practice Question
The strategy to bet that the credit position of one reference entity will improve relative to that of another is called:
B. curve trade.
C. basis trade.
A. long/short trade.
B. curve trade.
C. basis trade.
Correct Answer: A
The strategy involves taking a long position in one CDS and a short position in another.
User Contributed Comments 0
You need to log in first to add your comment.