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Section B (2 Mark)A bank has a limited geographic area.

Section B (2 Mark)

A bank has a limited geographic area. It would like to diversify its loan income with loans in other market areas but does not want to actually make loans in those areas because of their limited experience in those areas. Which type of credit derivative contract would you most recommend for this situation?

A.

Credit linked note

B.

Credit risk option

C.

Total return swap

D.

Credit swap

AAFM CWM_LEVEL_2 Summary

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  • Product: CWM_LEVEL_2
  • Update on: Jul 30, 2025
  • Questions: 1259
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