Credit default swap is essentially

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Reference no: EM13940398

1. An option strategy in which you hold a long position in both a put and a call option with the same strike price is called

A) portfolio insurance.

B) a strangle.

C) a straddle.

D) a butterfly spread.

2. A credit default swap is essentially a

A) call option on the firm's debt.

B)put option on the firm's debt.

C) call option on the firm's assets

D) put option on the firm's assets.

Reference no: EM13940398

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