You Are a Hedge Fund and You Enter a Contract

You are a hedge fund and you enter a contract which involves 3 players: You, the American Bank and WePro Ltd. The American Bank lends $1,000 to WePro and they want you to share the risk in case WePro fails to pay back. If you give the American Bank $1,000, you will get a fixed monthly payment worth 10% of $1,000 for the duration of the contract-as long as WePro doesn't default. However, if WePro defaults on its debt, you will have to pay $1,000 to the American Bank and the contract is terminated. What type of contract is this?

A) Credit default swap.
B) Long-term loan.
C) Hedging.
D) Insurance.