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Which of the following best describes owning a call option on a credit default swap? Equivalent to being long a binary credit option. Equivalent to

Which of the following best describes owning a call option on a credit default swap?

Equivalent to being long a binary credit option.

Equivalent to being short a binary credit option.

Having a limited loss and benefiting if the credit spread widens.

Having a limited loss and benefiting if the credit spread narrows.

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