AFP CTP Exam Questions
Certified Treasury Professional (Page 3 )

Updated On: 15-Feb-2026

A put option on a company's stock has an exercise price of $20. On the delivery date, the stock is trading at $24 per share. What should the investor who has paid $2 for the option do?

  1. Not exercise the option and lose $2.
  2. Not exercise the option and lose $6.
  3. Exercise the option and gain $2.
  4. Exercise the option and gain $4.

Answer(s): A



A call option for a company has an exercise price of $50. The stock is currently trading at $60. At maturity, what should an investor who paid $3 for the option do?

  1. Exercise the option and gain $7.
  2. Exercise the option and gain $10.
  3. Not exercise the option and lose $3.
  4. Not exercise the option and lose $13.

Answer(s): A



In a typical swap transaction, two parties agree to exchange:

  1. notional principal amounts.
  2. amortization schedules.
  3. maturity dates of obligations.
  4. cash flows at future points in time

Answer(s): D



A Chicago meat processor is concerned about the volatility of pork belly prices. Which of the following derivative products would be used to fix these prices within a given range?

  1. Collar
  2. Swap
  3. Cap
  4. Spot purchase

Answer(s): A



On the basis of the following exchange rates, which of the following currency amounts has the greatest value in U.S. dollars?

  1. C$750,000
  2. £850,000
  3. €900,000
  4. ¥5,000,000

Answer(s): B






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