Question: If the CDS spread for a regular 5-year CDS is 120 basis points, what are the CDS spread for a 5-year binary CDS on the

If the CDS spread for a regular 5-year CDS is 120 basis points, what are the CDS spread for a 5-year binary CDS on the same underlying reference entity? Assume a recovery rate of 50%.

A. 60 basis points

B. 200 basis points

C. 240 basis points

D. 300 basis points

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