Soa ifm - Study guides, Class notes & Summaries

SOA IFM EXAM WITH VERIFIED ANSWERS AND QUESTIONS ....

Derivative Security (Chp. 1) - A financial instrument whose value depends on another security. Option (Chp. 1) - An agreement allowing the buyer of the option to buy or sell an asset at a specific price on a specific day. Clearinghouses (Chp. 1) - Matches the buyers and the sellers and keeps track of their obligations and payments. Measures of Market Size and Activity (Chp. 1) - 1) Trading Volumne 2) Market Value 3) Notional Value 4) Open Interest Purpose of Derivatives (Chp. 1) - 1) Ri...

SOA IFM Exam With Complete Solutions.

Bull Spread - Call - Long Call (K1) + Short Call (K2), K1<K2 Bull Spread - Put - Long Put (K1) + Short Put (K2), K1 < K2 Bear Spread - Call - Short Call (K1) + Long Call (K2), K1<K2 Bear Spread - Put - Short Put (K1) + Long Put (K2), K1<K2 Box Spread - Long call (put) bull spread + Long put (call) bear spread Ratio Spread - Long and short an unequal number of calls/puts with different strike prices Collar - Long Put (K1) + Short Call (K2), K1<K2 Collared Stock - Long Collar...

SOA IFM Exam 2022 with complete solution

SOA Exam IFM Concepts(Completed)2023

1. to manage risk 2. to speculate 3. to reduce transaction cost 4. to minimize taxes/avoid regulatory issues - Answer- 4 reasons for using derivatives bid price - Answer- the price at which market-makers will buy and end-users will sell ask/offer price - Answer- the price at which market-makers will sell and end-users will buy bid-ask spread - Answer- ask price - bid price round-trip transaction cost - Answer- difference between what you pay and what you receive from a sale using ...

Determine which of the following is the most likely NOT a typical feature of convertible preferred stock. A Guarantee on initial investment B Anti-dilution protection C Board membership D Participation rights E Liquidation preference - Answer- A Long Floor - Answer- Buy Stock, Buy Put -> Guarantees minimum selling price Written Covered put - Answer- Short stock, short put -> guarantees max loss Long Cap - Answer- Long Stock, short call -> guarantees max purchase pri...