2) Assuming a recovery rate of 40% which is known with certainty, is there a maximum...

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2) Assuming a recovery rate of 40% which is known with certainty, is there a maximum value a CDS can be worth? Is there a min

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A CDS WHICH IS HAVING RECOVERY RATE OF 40% KNOWN WITH CERTAINTY SHALL YIELD A MAXIMUM VALUE UPTO 100 % OF VALUE OF CDS, PROVIDED , THE UNCERTAIN AMOUNT ALSO GETS RECOVERED WITHOUT ANY DEFAULT.

FURTHER, THE MINIMUM VALUE OF CDS SHALL BE THE RECOVERY RATE OF 40% WHICH IS CERTAIN TO RECOVER IN ALL CIRCUMSTANCES.

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