A bank is about to make a $50 million project loan to develop a new oil field and is worried that the petroleum engineer's estimates of the yield on the field are incorrect.The bank wants to protect itself in case the developer cannot repay the loan.Which type of credit derivative contract would you most recommend for this situation?
A) Credit-linked note
B) Credit option
C) Credit risk option
D) Total-return swap
E) Credit swap
Correct Answer:
Verified
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