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A CDS works the same way as an insurance on default True False If an equity swap is signed at time 0, promising to exchange
A CDS works the same way as an insurance on default
True |
False |
If an equity swap is signed at time 0, promising to exchange a fixed rate against the gains of the Dow Jones index, and the index starts falling, the value of the swap ______ (decreases/increases) for the investor who promised to pay the fixed rate.
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