Question
Suppose that you want to short BUGs outstanding ten-year, 5 percent coupon bond, but you can-not find anyone willing to lend you the bond (to
Suppose that you want to short BUGs outstanding ten-year, 5 percent coupon bond, but you can-not find anyone willing to lend you the bond (to short). Given that US Treasuries and CDS trade, you can create a short position in BUGs bond by: Select one: a. going long a ten-year CDS on BUG and buying a ten-year US Treasury bond b. going long a ten-year CDS on BUG c. going long a ten-year CDS on BUG and shorting a ten-year US Treasury bond d. going short a ten-year CDS on BUG e. going short a ten-year CDS on BUG and shorting a ten-year US Treasury bond
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