- CFA Exams
- CFA Level I Exam
- Study Session 13. Fixed Income (2)
- Reading 36. Credit Default Swaps
- Subject 1. Basic definitions and concepts
CFA Practice Question
In a CDS, the protection buyer takes on the default risk of:
A. the reference entity.
B. the protection seller.
C. simultaneous default by the reference entity and the protection seller.
Explanation: This is referred to as "double default".
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