A Credit Default Swap has the following attributes: I. Is basically an insurance policy for an asset II. Can be bought whether or not you own the asset II. Were one of the major reasons the financial markets collapsed in 2007 IV. Are now regulated O A. I & II O B. II & III O C.II & IV D. I,II,II & IV

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Swaps

A swap is a derivative contract in which two parties are agreed to exchange their cash flows from two different financial instruments for a defined period. In swap contracts, cash flows from one financial instrument are fixed and cash flow from other financial instruments is variable based on the interest rate, exchange rate, and commodity price. Swap contracts are transacted in an over-the-counter system. Swap contracts are utilized to hedge risk and mitigate loss.