CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

Buying a CDS is similar to the following EXCEPT FOR:
A. buying put options on a corporate's bond.
B. buying insurance contracts on a corporation's bond.
C. buying call options on a corporate's bond.
Explanation: A: the protection buyer is protected against the losses resulting from a decline in the value of the bond as a result of a credit event.

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