Mock Test 2 — Topic 7: Derivatives

Kết quả: 1/11 (9%) Nguồn: SAPP CFA1 Revision Mock Test 2 Liên kết: Derivatives

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Câu 91

Question 91: For European option prices, a replicating portfolio is required to establish:

(A) both lower and upper bounds.

(B) lower bounds, but not upper bounds.

(C) upper bounds, but not lower bounds.


Câu 125

Question 125: Natalia Coffey enters a forward contract to sell 10,000 shares of Drebin PLC for £120 per share. By entering this contract, Coffey most likely:

(A) establishes a hedge.

(B) takes on short exposure to the underlying.

(C) agrees to deliver 10,000 shares on the settlement date.


Câu 133

Question 133: A one-period binomial model for pricing a call option with an exercise price of 30.0 has a hedge ratio of 0.4. If the model assumes the underlying price is 33.0 after an up-move, the value it assumes for the underlying after a down-move is closest to:

(A) 25.5.

(B) 28.8

(C) 31.1


Câu 137

Question 137: A 30-day forward rate agreement on 90-day LIBOR is most likely to be used by:

(A) a lender to lock in an interest rate on a loan it has made to a third party.

(B) a borrower to lock in an interest rate on a loan it will take out in 30 days’ time.

(C) an investor to offset the risk of a long position in a zero coupon bond maturing in 90 days.


Câu 142

Question 142: The price of an existing fixed-for-floating interest rate swap will:

(A) be unaffected by changes in the market reference rate after the swap is initiated.

(B) increase if the market reference rate increases consistently between the first and last settlement date.

(C) increase if the market reference rate decreases consistently between the first and last settlement date.


Câu 147

Question 147: If put-call parity holds, a long asset position, combined with a long put option and short call option on the same asset with the same exercise price and expiration date, will have a payoff at the expiration date of the options equal to:

(A) the asset price.

(B) the exercise price of the options.

(C) the exercise price of the options minus the asset price.


Câu 152

Question 152: A similarity between interest rate swaps and credit default swaps is that both:

(A) are forward commitments.

(B) specify a market reference rate.

(C) have payments based on a notional principal.


Câu 158

Question 158: When put-call-forward parity for European options holds, the present value of the price of a forward contract on an asset:

(A) plus the value of a put option is equal to the value of a long call option on the same underlying asset plus a long zero coupon risk-free bond with face value equal to the exercise price of the options.

(B) plus the value of a call option is equal to the value of a long call option on the same underlying asset plus a long zero coupon risk-free bond with face value equal to the exercise price of the options.

(C) less the value of a put option is equal to the value of a long call option on the same underlying asset plus a long zero coupon risk-free bond with face value equal to the exercise price of the option.


Câu 166

Question 166: An investor takes a long position in a commodity forward contract at a forward price of 105 when the spot price is 102. One month later the spot price has increased to 110. At that time, the forward price of the contract is:

(A) 105.

(B) Greater than 110.

(C) Between 105 and 110.


Câu 175

Question 175: Which of the following statements regarding the differences between interest rate swaps and forward rate agreements is most accurate?

(A) Forward rate agreements are commitments, whereas interest rate swaps are contingent claims.

(B) Forward rate agreements have a single settlement date, whereas interest rate swaps have several settlement dates.

(C) Ignoring transactions costs, forward rate agreements require no upfront payment, whereas interest rate swaps require the payment of an upfront premium.


Câu 179

Question 179: Consider an investor who writes a put on a share at X for premium of $5 and an investor who takes a long forward position at X in the same asset for the same period. If ST is the asset price at settlement, both investors will have the same profit at settlement only if:

(A) ST – X = $5.

(B) ST – X ≤ 0.

(C) X – ST = $5.