Is the$$ analyst's firm likely to be buying or selling credit default swaps on a distressed$$ firm?

Part $4$

A$.$

They are most likely selling so they can provide additional funds to the company in order to help them avoid defaulting on their bonds.

B$.$

They are most likely buying so they can provide additional funds to the company in order to help them avoid defaulting on their bonds.

C$.$

They are most likely buying so they can earn a payoff if the distressed company ends up defaulting on their bonds.

D$.$

They are most likely selling so they can earn a payoff if the distressed company ends up defaulting on their bonds.