A firm is considering using Credit default swaps to monitor the credit risk of its portfolio:

a$.$

This should give a precise measure of its credit risk.

b$.$

The firm has to be aware of the problems the lack of liquidity can cause when monitoring credit risk.

c$.$

This will work well if the firm has a portfolio of small business loans.

d$.$

This will work well if the firm has a portfolio of more than $2,000$ major companies.