Assume that the spread on Bond B in the CDS market is 6%. Assume that in the spot market, the spread between the risky bond and the risk free bond is 7%. What should a trader do? Buy credit protection using the CDS and simultaneously buy the risky bond and short sell the risk free bond Sell credit protection using the CDS and simultaneously buy the risky bond and short-sell the risk-free bond. Buy credit protection using the CDS and simultaneously buy the risk-free bond and short-sell the risk free bond. Sell credit protection using the CDS and simultaneously buy the risk-free bond and short-sell the risk free bond. Question 4 0/1.2pts Assume that the spread on Bond C in the CDS market is 4\%. Assume that in the spot market, the spread between the risky bond and the risk-free bond is 3%. What should a trader do? Sell the CDS and simultaneously buy the risky bond and short sell the risk-free bond. Buy the CDS and simultaneously buy the risk-free bond and short sell the risky bond. Buy the CDS and simultaneously buy the risky bond and short sell the risk-free bond. Sell the CDS and simultaneously buy the risk-free bond and short sell the risky bond