Answer the below questions. (a) For a single-name credit default swap, what is the difference between physical
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(a) For a single-name credit default swap, what is the difference between physical settlement and cash settlement?
(b) In physical settlement, why is there a cheapest-to-deliver issue?
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a For a singlename credit default swap CDS physical delivery for a credit event means that the protection buyer delivers a reference obligation to the protection seller in exchange for a cash payment ...View the full answer
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