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Is it a credit derivative, for example, CDS, CDO, or Credit linked notes, etc.?
Yes.No.I don’t know.
Does your derivative have embedded optionality? (Optionality is the property of asymmetric upside and downside. A classic example of optionality is an option on stock.)
Are there any early termination features (any conditions/options that could lead to a termination before the contractual maturity)?
No.Yes, and it is a one time exercise.Yes, and it can be exercised on specified dates or at any time, up to expiry.I don’t know.
What is the underlying?
A single stock/interest rate/commodity/fx.A basket of different underlyings.I don't know.
What determines the derivative's cash flow(s)?
Cash flows are fixed amounts described in the contract.Underlying spot price on the settlement day(s).More complicated than either answer 1 or answer 2.
Your credit derivative is:
CDS on a single corporate name.CDS on a basket of companies or a published index.A tranche of a bespoke portfolio of corporate names.A tranche of a bespoke portfolio of structured credit products.I don't know exactly.
Does the structure subject you to virtually unlimited loss?
No.Yes, and I know how it works.Yes, but I don't know how it works.I don't know.
Does the structure feature leverage or gearing?
Do I have all appropriate models/data for fair value determination including, for example basis adjustments, quanto adjustments, valuation adjustments for credit and funding, etc. or will my financial advisor run these for me?
Yes.No.I don't know.
Have I produced analytics showing probable hedge effectiveness or has my financial advisor done this for me?
Yes.This is not a hedge.No.
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