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     EduGorilla 
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    Credit Default Swaps (CDS) are similar to that of an insurance policy in which of the following ways?
    I. Insurance companies manage the risk by setting the loss reserves based on the law of large numbers
    II. Insurance policy provides the protection against the actual losses suffered by the policy holder
    III. The buyer of the CDS contract pays a premium and receives money if any event specified in the contract occurs.
    IV. To cancel an insurance policy a buyer has to simply stop paying premium.

    Options :-

    1. Both I and IV
    2. Both I and II
    3. Only I
    4. Only III
    5. Only IV
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