问题如下:
When an institution has sold exposure to another institution (i.e., purchased protection) in a CDS, it has exchanged the risk of default on the underlying asset for which of the following?
选项: Default
risk of the counterparty
Default risk of a credit exposure identified by the counterparty
C.Joint risk of default by the counterparty and of the credit exposure identified by the counterparty
D.Joint risk of default by the counterparty and the underlying asset
解释:
ANSWER: D
The protection buyer is exposed to the joint risk of default by the counterparty and underlying credit. If only one defaults, there is no credit risk.
前面问答里提到的CDS标的资产对手方,是指bond X;CDS对手方是指insurer么?