CFA derivatives

Which of the following statements best contrasts the credit risk of the Baywhite Financial LLC Structured Note with the counterparty credit risk of an investor entering into the embedded exchange-traded derivative on a stand-alone basis?

1. An investor in the Baywhite Structured Note assumes the credit risk of Baywhite Financial LLC for 20% of the note’s face value, as the remaining 80% is principal protected. An investor entering into the SIXV derivative on a stand-alone basis assumes the counterparty credit risk of a financial intermediary.
2. An investor in the Baywhite Structured Note assumes the credit risk of Baywhite Financial LLC for 80% of the note’s face value, as the remaining 20% is associated with the embedded derivative. An investor entering into the SIXV derivative on a stand-alone basis assumes the counterparty credit risk of a financial intermediary.
3. An investor in the Baywhite Structured Note assumes the credit risk of Baywhite Financial LLC for 100% of the note’s face value, while an investor entering into the SIXV derivative on a stand-alone basis assumes the counterparty credit risk of an exchange and its clearinghouse