B选项我怎么知道这个 iTraxx Crossover具体是属于哪个国家的呢？

问题如下：

Chan discusses the mechanics of a long/short trade. In order to structure a number of potential trades, Chan and Smith exchange their respective views on individual companies and global economies. Chan and Smith agree on the following outlooks.

Outlook 1: The European economy will weaken.

Outlook 2: The US economy will strengthen relative to that of Canada.

Outlook 3: The credit quality of electric car manufacturers will improve relative to that of traditional car manufacturers.

Based on the three economic outlook statements, a profitable long/short trade would be to:

选项：

A.

sell protection using a Canadian CDX IG and buy protection using a US CDX IG

B.

buy protection using an iTraxx Crossover and sell protection using an iTraxx Main

C.

buy protection using an electric car CDS and sell protection using a traditional car CDS

解释：

Correct Answer: B

Based on Outlook 1, Chan and Smith anticipate that Europe’s economy will weaken. In order to profit from this forecast, one would buy protection using a high-yield CDS index (e.g., iTraxx Crossover) and sell protection using an investment-grade CDS index (e.g., iTraxx Main).