In a credit default swap, the most a seller of the swap may have to pay is

Name: In a credit default swap, the most a seller of the swap may have to pay is
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In a credit default swap, the seller (also known as the protection seller) may have to pay the buyer the par value of the insured security if a credit event (such as default) occurs. This is because the essence of a credit default swap is to provide the buyer with protection against the default of a particular credit instrument.

In a Credit Default Swap, the Most a Seller of the Swap