Free PRMIA 8013 Exam Questions
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PRMIA 8013 Exam Questions
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Provided By: PRMIA
- Exam: PRM Exam 1: Finance Foundations
- Certification: PRM
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Total Questions: 290
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Updated On: Feb 17, 2025
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Rated: 4.9 |
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Online Users: 580
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Question 1
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Which of the following have a negative gamma:I. a long call positionII. a short put positionIII. a short call positionIV. a long put position
Answer: C
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Which of the following have a negative gamma:I. a long call positionII. a short put positionIII. a short call positionIV. a long put position
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Question 2
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What is the duration of a 10 year zero coupon bond. Assume the bond is callable (ie, the issuer can buy it
back) at face value at any time during its existence.
Answer: D
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What is the duration of a 10 year zero coupon bond. Assume the bond is callable (ie, the issuer can buy it
back) at face value at any time during its existence.
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Question 3
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A fund manager buys a gold futures contract at $1000 per troy ounce, each contract being worth 100 ounces
of gold. Initial margin is $5,000 per contract, and the exchange requires a maintenance margin to be
maintained at $4,000 per contract. Prices fall the next day to $980. What is the margin call the fund manager
faces in respect of daily variation margin ?
Answer: B
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A fund manager buys a gold futures contract at $1000 per troy ounce, each contract being worth 100 ounces
of gold. Initial margin is $5,000 per contract, and the exchange requires a maintenance margin to be
maintained at $4,000 per contract. Prices fall the next day to $980. What is the margin call the fund manager
faces in respect of daily variation margin ?
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Question 4
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What is the standard deviation (in dollars) of a portfolio worth $10,000, of which $4,000 is invested in Stock
A, with an expected return of 10% and standard deviation of 20%; and the rest in Stock B, with an expected
return of 12% and a standard deviation of 25%. The correlation between the two stocks is 0.6.
Answer: A
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What is the standard deviation (in dollars) of a portfolio worth $10,000, of which $4,000 is invested in Stock
A, with an expected return of 10% and standard deviation of 20%; and the rest in Stock B, with an expected
return of 12% and a standard deviation of 25%. The correlation between the two stocks is 0.6.
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Question 5
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Identify the underlying asset in a treasury note futures contract?
Answer: B
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Identify the underlying asset in a treasury note futures contract?