Free 2016-FRR Exam Braindumps (page: 8)

Page 8 of 86

In the United States, Which one of the following four options represents the largest component of securitized debt?

  1. Education loans
  2. Credit card loans
  3. Real estate loans
  4. Lines of credit

Answer(s): C



A risk manager is considering how to best quantify option price dynamics using mathematical option pricing models.
Which of the following variables would most likely serve as an input in these models?
I) Implicit parameter estimate based on observed market prices
II) Estimates of sensitivity of option prices to parameter changes
III) Theoretical option determination based on assumptions

  1. I, III
  2. II
  3. II, III
  4. I, II, III

Answer(s): D



Which one of the following four statements correctly defines an option's delta?

  1. Delta measures the expected decline in option with time and is usually expressed in years.
  2. Delta measures the effect of 1 bp in interest rate change on the option price.
  3. Delta is the multiplier that best approximates the short-term change in the value of an option.
  4. Delta measures the impact of volatility on the price of an option.

Answer(s): C



Which one of the following four variables of the Black-Scholes model is typically NOT known at a point in time?

  1. The underlying relevant exchange rates
  2. The underlying interest rates
  3. The future volatility of the exchange rates
  4. The time to maturity

Answer(s): C



Page 8 of 86



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

blaze commented on December 12, 2024
is the PDF worth it? Are these questions the same on the exam?
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Mike Kutenda Chizinga commented on December 12, 2024
are these questions still valid
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sas commented on December 12, 2024
good but not flexible
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Anonymous commented on December 12, 2024
Very helpful and reference link also has been given.
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Anonymous commented on December 12, 2024
Preparing or certification
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Preparing for the exam
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lot of the questions are from AZ-400 practice test
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very relevant information
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yajnas commented on December 12, 2024
good material
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AEB commented on December 11, 2024
The breadth of knowledge for this exam is large. It doesn't seem possible to learn everything on it for an associate level exam.
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really good
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Anonymous commented on December 10, 2024
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helpful to recap the course
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Sandeep Singh commented on December 10, 2024
All questions are from real exam.
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Usman commented on December 10, 2024
It is a great collection but I have noticed that some answers are wrong. For example, it says that correct answer is B but the description of that answer matches with answer A. So it is advisable to read the answer's description as well.
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