If you are interested in speculating on a deterioration in the credit quality of a company, which of the following would be appropriate?
A) Buy the bonds of the company.
B) Short the forwards on the credit spread of the company.
C) Buy credit spread call options on the company's bonds (i.e., options that pay off if the spread widens) .
D) Sell put options on the company's bonds.
Correct Answer:
Verified
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