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When an institution has sold exposure to another

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Reference no: EM13568934

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?

A. Default risk of the counterparty

B. 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

Reference no: EM13568934

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