True or False? 13. Although unusual, a CDS can involve payments made even after the...

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Finance

True or False?

13. Although unusual, a CDS can involve payments made even after the bonds maturity date has passed.

14. Credit default swaps have been described as essentially insurance policies.

15. According Alloway, index based credit default swaps suffer from the inability to hedge against specific defaults.

16. Credit default swaps were pioneered by J. P. Morgan in the early 1980s.

17. Murphy argues that the fact that over 100% of GameStop stock had been shorted was not especially problematic as the borrowed shares are sold to new owners, who are free to lend them out to another short-seller.

18. While AIG lost some $30 billion because of the collapse of their credit default swaps, they had a partially offsetting gain of some $21 from their securities lending activity.

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