A combination of a plain vanilla credit default swap (CDS) and a credit default swap option (CDS option) on the part of the protection buyer/ seller to terminate the swap contract at any time or on a specific date before expiration. This type of swaps is similar to a compound stock option. It is usually classified as callable CDSs and puttable CDSs.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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