A buys a CDS from B on the bonds issued by C$.$

The CDS has an annual premium and cash settlement.

Just after the original trade is agreed, C experiences improved trading conditions.

The CDS spread goes down to reflect this. A unwinds the trade by going short the CDS$.$

What will be the net cashflows over the CDS term for A$?$

Original CDS

Years $2\mathrm{.}0$

Premium, bps $110\mathrm{.}0$

Notional, mn $50\mathrm{.}0$

Close out CDS

Years $2\mathrm{.}0$

Premium, bps $90\mathrm{.}0$

Notional, mn $50\mathrm{.}0$

Select one:

$(100,000\mathrm{.}0)$

$100,000\mathrm{.}0$

$200,000\mathrm{.}0$

$(200,000\mathrm{.}0)$