LBO: Equity-for-Credit Transaction?

CFA Level II Fixed Income
#1

[question removed by moderator]

My answer was C based on Example 11. However, the answer is B. The answer says “An equity-versus-credit trade would be to go long (buy) the Zega shares and short (buy protection) the Delta five-year CDS.”

However, how can you be buying protection buy shorting the CDS??? Delta is becoming more levered --> Higher Credit Spread --> Shouldn’t it be LONG Delta CDS?

Any explanation would be appreciated.

#2

Maybe you missed it, but in the CFAI reading, it is specifically explained that shorting a CDS means you’re buying protection.