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

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

A. Equivalent to being long a binary credit option.

B. Equivalent to being short a binary credit option.

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

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

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