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Section B (2 Mark)A bank is about to make a Rs50 million project loan to...

Section B (2 Mark)

A bank is about to make a Rs50 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.

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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