13. Leverage, Inc., an investment bank, has numerous credit default swaps with XYZ Corp. Leverage has established a break clause with XYZ Corp. to reduce risk. The break clause is trigger-based and may be exercised once the trigger is satisfied. The CEO of Leverage is concerned about a banker's paradox. Which of the following statement best describe the CEO's concern?

A. To be effective, the break clause option should not be used too early.

B. The weak firm often recovers after the use of the break clause. C

. The break clause option is used too late, and the weak firm gets weaker.

D. The break clause option is used too early, and relations with the counterparty suffer.