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Free 2016-FRR Exam Braindumps (page: 37)

Page 37 of 86
PDF with 342 Questions

James Johnson has a $1 million long position in ThetaGroup with a VaR of 0.3 million, and $1 million long position in VolgaCorp with a VaR of 0.4 million. The returns of the two companies have zero correlation.
What is the portfolio VaR?

  1. $1 million
  2. $0.7 million
  3. $0.5 million
  4. $0.4 million

Answer(s): C



Arnold Wu owns a floating rate bond. He is concerned that the rates may fall in the future decreasing his payment amount.
Which of the following instruments should he buy to hedge against the fall in interest rates?

  1. Interest rate floor
  2. Interest rate cap
  3. Index amortizing swap
  4. Interest rate swap that receives floating and pays fixed

Answer(s): A



In early March, an energy trader takes a long position in natural gas futures for delivery in June, and hedges this exposure by taking a position in futures for July delivery. These trades were executed on the expectation that over time, the relative prices of the June and July contracts will come into alignment, the movement in these two contracts will largely mirror each other, and as a result of this, the net exposure is minimized and the position is protected against absolute price movements. However, if the two relative prices do not come into alignment with each other due to the scarcity of any of the two traded contracts in the futures market, the trader is likely to become exposed to the

  1. Location basis
  2. Quality basis
  3. Product basis
  4. Calendar spreads basis

Answer(s): D



James Johnson bought a coupon bond yielding 4.7% for $1,000. Assuming that the price drops to $976 when yield increases to 4.71%, what is the PVBP of the bond.

  1. $26.
  2. $76.
  3. $870.
  4. $976.

Answer(s): A



Page 37 of 86



Post your Comments and Discuss GARP 2016-FRR exam with other Community members:

Mohamedk commented on December 24, 2024
It's very nice
Anonymous
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Amer commented on December 24, 2024
Thanks alot
EGYPT
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shankar commented on December 24, 2024
good set of questions
CHINA
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VARSHA commented on December 24, 2024
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Anonymous
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Robin commented on December 24, 2024
nice course
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Rama laksmana commented on December 23, 2024
Good question
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Chandru commented on December 23, 2024
Nice questions
UNITED STATES
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Amr commented on December 23, 2024
Good tutorial
Anonymous
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hari commented on December 23, 2024
Preparing for exam
INDIA
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Ichigo Kurosaki commented on December 23, 2024
Can I pass the exam, if I have done suppose 150 questions from here?
MALAYSIA
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Emma commented on December 23, 2024
Really helpful for preparing the exam
FRANCE
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Siva commented on December 23, 2024
Good ones with the quick start
INDIA
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sj commented on December 22, 2024
good set of questions
Anonymous
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sj commented on December 22, 2024
Questions that are typically not covered as part of the aws learning course videos
Anonymous
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sowmya commented on December 22, 2024
helpfull to prepare for the exam
Anonymous
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Leandro commented on December 22, 2024
very usefull
BRAZIL
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vishal solanke commented on December 22, 2024
Please try to post explanations
Anonymous
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Suchi Poddar commented on December 22, 2024
Good set and nice to see that so much help for the students. Thankyou so much.
Anonymous
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Prashant commented on December 22, 2024
good practise
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shree sri commented on December 22, 2024
great work for learning
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M Ajaykumar commented on December 21, 2024
Literally helpful
Anonymous
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Narasimha commented on December 21, 2024
it is helpful for ACE GCP Exsm
INDIA
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shan commented on December 21, 2024
Nice questions
Anonymous
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resha commented on December 21, 2024
Very nicely explained
Anonymous
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Abhishek commented on December 21, 2024
It was Nice
Anonymous
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Sumeet G Hongekar commented on December 21, 2024
I am eger to write cad exaam
UNITED STATES
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KAREEM ROFIAT BOLANLE commented on December 21, 2024
not yet written the exam
Anonymous
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Subham commented on December 21, 2024
Good set of question for practice
Anonymous
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Krish commented on December 20, 2024
Good to have test papers
INDIA
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Ashish Sharma commented on December 20, 2024
Very elaborative explanation and apt questions
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Ashish Sharma commented on December 20, 2024
Very Useful
CANADA
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Ashwani commented on December 20, 2024
Nice questions
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hardik commented on December 20, 2024
Very good content
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Test commented on December 20, 2024
its helpful
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