What type of credit derivative contract would you recommend for each of these situations:

a. A bank plans to issue a group of bonds backed by a pool of credit card loans but fears that the default rate on these credit card loans will rise well above 6 percent of the portfoliothe default rate it has projected. The bank wants to lower the interest cost on the bonds in case the loan default rate rises too high.

b. A commercial finance company is about to make a $50 million project loan to develop a new gas field and is concerned about the risks involved if petroleum geologists estimates of the fields potential yield turn out to be much too high and the field developer cannot repay.

c. A bank holding company plans to offer new bonds in the open market next month but knows that the companys credit rating is being reevaluated by credit-rating agencies. The holding company wants to avoid paying sharply higher credit costs if its rating is lowered by the investigating agencies.