Free SOFA-CFE Exam Braindumps
Certified Financial iner Questions 106–110 (page: 23)

Updated On: 10-Feb-2026

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



A swap is an agreement between two or more parties to exchange payments based on the performance of underlying interests.

  1. True
  2. False

Answer(s): A



An agreement (other than a future) to exchange, at a specified future date and price, underlying interests is called:

  1. Present
  2. Forward
  3. Foreign
  4. None of the above

Answer(s): B



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