CFR-410 Practice Questions

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NEW QUESTION: 1
A risk manager analyzes a long position with a USD 10 million value. To hedge the portfolio, it seeks to use
options that decrease JPY 0.50 in value for every JPY 1 increase in the long position. At first approximation,
what is the overall exposure to USD depreciation?
A. His overall portfolio has the same exposure to USD as a portfolio that is long USD 10 million.
B. His overall portfolio has the same exposure to USD as a portfolio that is short USD 5 million.
C. His overall portfolio has the same exposure to USD as a portfolio that is short USD 10 million.
D. His overall portfolio has the same exposure to USD as a portfolio that is long USD 5 million.
Answer: D

NEW QUESTION: 2

A. Option A
B. Option E
C. Option B
D. Option C
E. Option D
Answer: A,D,E

NEW QUESTION: 3
You log in to a SnapMirror destination to review the system. Which scanner would you expect to see
running?
A. container block reclamation
B. deswizzler
C. active bitmap real management
D. blocks used summary update
Answer: A

NEW QUESTION: 4
If you execute a sale of bonds, and the securities have not been delivered 2 days after you have received payment on the agreed settlement date, which of the following is correct:
A. the counterparty will have to pay at least 2 days of interest charges on top of the coupon
B. the counterparty has a debt to you
C. you will have to pay at least 2 days of funding costs on top of the coupon
D. you have no debt to the counterparty
Answer: C