Credit options are also bilateral over-the-counter financial contracts. A credit option is a contract designed to meet specific hedging or speculative requirements of an entity, which may purchase or sell the option to meet its objectives. A credit call option gives the buyer the right - without the obligation - to purchase the underlying credit-sensitive asset, or a credit spread, at a specified price and specified time (or period of time). A credit put option gives the buyer the right - without the obligation - to sell the underlying credit-sensitive asset or credit spread. By purchasing credit options, banks and other institutions can take a view on credit spread movements for the cost of the option premium only, without recourse to act....