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Credit Derivative. Mr. Keung borrowed $5 million from ABC Bank. Credit default swaps (CDS) are available on this loan. If you believe there is a

Credit Derivative. Mr. Keung borrowed $5 million from ABC Bank. Credit default swaps (CDS) are available on this loan. If you believe there is a high likelihood Mr. Keung will pay back the loan on time, you should

Question 9 options:

1)	Buy a CDS in the secondary market

2)	Sell a CDS in the secondary market

3)	Encourage ABC Bank to buy a CDS

4)	None of the above

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