Answer the below questions. (a) For a single-name credit default swap, what is the difference between physical settlement and cash settlement? . (b) In physical settlement, why is there a cheapest-to-deliver issue? (Please correct answer)

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
ChapterP1: Part 1: Integrative Problem: The International Financial Environment
Section: Chapter Questions
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. Answer the below questions. (a) For a single-name credit default swap, what is the difference between physical settlement and cash settlement? . (b) In physical settlement, why is there a cheapest-to-deliver issue? (Please correct answer)
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