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$?$

Group of answer choices

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.

Buy credit protection using the CDS and simultaneously buy the risky bond and short sell the risk free bond