You have the choice to enter into a cash-settled or physically-settled CDS contract, both of which have the same premium, term, and reference the debt of the same company. You decide to enter into a cash-settled CDS to sell protection and subsequently the company defaults on its bond payments. You believe that the auction held to determine the recovery value of the bond resulted in a value much lower than fair.

1. 		You are happy you entered into a cash-settled rather than a physically-settled CDS contract
   		You wish you had entered into a physically settled CDS contract rather than a cash-settled CDS contract.
   		The auction value is not relevant to this question
   		Blank - do not select this answer