I have noticed in all CFAI mock exams and practice tests the following…
Buy protection = Buy CDS.
For example “Company X issues debt to acquire Company Y. Solution: Buy a CDS, because you need to buy protection due to high risk”
However book (official) says Buy protection = SELL CDS.
This makes me mad. I have lost so many questions due to this. Finally, which answer is right? Buy protection is buy or sell CDS? I can’t believe that CFAI theory (and EOC questions) claim the opposite to the CFAI mocks.