Free CFE Exam Braindumps (page: 27)

Page 27 of 105

An agreement giving the buyer the right to receive, sell or effect a cash settlement based on the actual performance of an underlying interest is called:

  1. Actuator
  2. Gain
  3. Hedging
  4. Option

Answer(s): D



An agreement obligating the seller to effect cash settlement to the buyer if the specified underlying interest exceeds a predetermined level of performance is known as:

  1. Cap
  2. Capital
  3. Excess
  4. Dissipation

Answer(s): A



An agreement obligating the seller to effect cash settlement to the buyer if the specified underlying interest does not exceed a predetermined level of performance is referred to
as:

  1. Cap
  2. Floor
  3. Obligatory
  4. Moderation

Answer(s): B



An agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor is called:

  1. Derivative
  2. Miscellaneous
  3. Obligatory
  4. Collar

Answer(s): D



Page 27 of 105



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sena commented on May 31, 2019
I will see if this helps
TURKEY
upvote