In a One-Year Forward Contract on a CDS That Will

In a one-year forward contract on a CDS that will last five years, what happens if there is a default during the first year? choose one)

A) There is a payoff to the forward protection buyer at the time of default
B) There is a payoff to the forward protection buyer at the end of one year
C) There is a payoff to the forward protection buyer at the end of six years
D) The contract ceases to exist

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