Potential asymmetric information prob in credit default swap

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Reference no: EM131240292

1. Explain how forward contracts and options on credit default swaps are structured.

2. ‘‘The position of a buyer of a credit default swap is similar to the position of someone who is long a risk-free bond and short a corporate bond.'' Explain this statement.

3. Why is there a potential asymmetric information problem in credit default swaps?

Reference no: EM131240292

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