- 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
Which party will pay the upfront premium if the standard rate is more than the credit spread?
A. The protection buyer.
B. The protection seller.
C. The borrower.
Explanation: In this case the standard rate the seller charges is too high.
User Contributed Comments 0
You need to log in first to add your comment.