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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?

A. protection buyer.
B. protection seller.
C. neither, as the upfront premium has been paid.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

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.