Free CIMAPRO19-P03-1 Exam Braindumps
P3 Risk Management Questions 71–75 (page: 16)

A UK manufacturing company has simultaneously:
· purchased a put option to sell USD 1million at an exercise price of GBP1.00 = USD1.65 · sold a call option that grants the option holder the right to buy USD 1million at a price of GBP1.00 = USD1.61 (this option has the same maturity date as the put). Which of the following is a valid explanation for entering into these option positions?

The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?

The managers of a company are agents for the shareholders tasked with increasing shareholders' wealth. Which of the following will usually increase shareholders' wealth?

YGH has recently completed a post completion audit on a five year contract that has only recently come to a conclusion. The main finding was that the project delivered most of the expected benefits, but that it cost significantly more to implement than had been anticipated at the project appraisal stage. YGH would not have proceeded if the true cost had been known at that stage. The project was the responsibility of the production department, which is presently managed by G. When the project was proposed, the production department was managed by H. H is now YGH's Director of Operations.
How should the finding from this post completion audit be interpreted?

A UK based company is considering an investment of GB£1,000,000 in a project in the US