Debt of a corporate subject to default risk will theoretically always trade at a discount to comparable default-risk free dobt becuase of the presence of: The short call option The long call option The short put option The long put option QUESTION 12 With regard to credit risk modeling. match the following key terms: Default Risk A. Likelihood of an event of default Expected Exposure B. Loss recovered following default Loss Given Default C. Amount of a loss if an event of defautt occurs Recovery Rate D. Projected amount an investor could lose if an event of default occurs