Free AFE Exam Braindumps
Accredited Financial Examiner (AFE) Questions 111–115 (page: 24)

Updated On: 10-Feb-2026

Put Option is:

  1. A procedure that grants the holder the right but not the obligations to buy the main asset at the specified market price.
  2. A strategy that grants the holder the right to sell the underlying asset at the actual price.
  3. An instrument that grants the holder the right but not the obligations to sell the underlying asset at the specified strike price.
  4. An activity that grants the holder the right to put obligations to the underlying asset at the specified strike price.

Answer(s): C



A private agreement to buy or sell a given quantity of an asset such as a currency, interest rate or commodity at a specified future date at a specified price is called:

  1. Forward investment plan
  2. Future agreement plan
  3. Future Contract
  4. Forward Contract

Answer(s): D



Which of the following is NOT the Asset/ Liability Management (ALM) activity?

  1. Regulation of Insurer Financial Disclosure
  2. Regulation of Insurer Investment Activity
  3. Regulation of Insurer Reserve Adequacy
  4. Regulation of Insurer Asset Adequacy

Answer(s): A



A holistic analysis in a multi-scenario framework of all significant factors that can affect an insurer's future financial condition is called:

  1. Insurance resting (IT)
  2. Dynamic solvency testing (DST)
  3. Financial testing (AT)
  4. Adequacy testing (AT)

Answer(s): B



A metric is a measurement standard or yardstick for quantifying Asset/Liabilities Management (ALM) risk.

  1. True
  2. False

Answer(s): A



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