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Derivatives Q26

26Keene Smith, an investor, aims to invest in derivatives that can be classified as forward commitments. Which of the following is she least likely to consider?
  • Option : A
  • Explanation : A credit default swap (CDS) is a derivative in which the seller provides credit protection to the buyer against the credit risk of a separate party. It is hence classified as a contingent claim. B and C are incorrect because futures contracts and interest rate swaps are classified as forward commitments.
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