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Basic Question 8 of 9
If a company's credit spread widens during the life of a CDS, which party will benefit?
B. protection seller.
C. neither, as the upfront premium has been paid.
A. protection buyer.
B. protection seller.
C. neither, as the upfront premium has been paid.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain the principles underlying and factors that influence the market's pricing of CDS;
CFA® 2025 Level II Curriculum, Volume 4, Module 30.