PRIMA 8006 PRM Certification – Exam I: Finance Theory, Financial Instruments, Financial Markets – 2015 Edition Online Training
PRIMA 8006 Online Training
The questions for 8006 were last updated at Dec 25,2024.
- Exam Code: 8006
- Exam Name: PRM Certification - Exam I: Finance Theory, Financial Instruments, Financial Markets – 2015 Edition
- Certification Provider: PRIMA
- Latest update: Dec 25,2024
What is the fair price for a bond paying annual coupons at 5% and maturing in 5 years.
Assume par value of $100 and the yield curve is flat at 6%.
- A . $104.33
- B . $95.79
- C . $100.00
- D . $94.73
What is the fair price for a bond paying annual coupons at 5% and maturing in 5 years.
Assume par value of $100 and the yield curve is flat at 6%.
- A . $104.33
- B . $95.79
- C . $100.00
- D . $94.73
What is the fair price for a bond paying annual coupons at 5% and maturing in 5 years.
Assume par value of $100 and the yield curve is flat at 6%.
- A . $104.33
- B . $95.79
- C . $100.00
- D . $94.73
The yield-to-maturity on a 10 year coupon bearing bond
- A . 1, 2, 3
- B . 2, 1, 3
- C . 1, 3, 2
- D . 3, 2, 1
A stock sells for $100, and a call on the same stock for one year hence at a strike price of $100 goes for $35.
What is the price of the put on the stock with the same exercise and strike as the call? Assume the stock pays dividends at 1% per year at the end of the year and interest rates are 5% annually.
- A . $41.50
- B . $31.20
- C . $35
- D . $31.95
[According to the PRMIA study guide for Exam 1, Simple Exotics and Convertible Bonds have been excluded from the syllabus. You may choose to ignore this question. It appears here solely because the Handbook continues to have these chapters.]
Which of the following is not an approach to attempt to value to a convertible security:
- A . DCF analysis
- B . Bootstrapping
- C . Lower of bond value and value of converted shares
- D . Bond value plus equity option value
The two components of risk in a commodities futures portfolio are:
- A . Changes in the convenience yield and storage costs
- B . Changes in spot prices and carrying costs, also called commodity lease rates
- C . Changes in interest rates and spot prices
- D . The risk from change in basis and interest rates
Which of the following statements are true:
I. Protective puts are a form of insurance against a fall in prices
II. The maximum loss for an investor holding a protective put is equal to the decline in the value of the underlying
III. The premium paid on the put options held as a protective put is a loss if the value of the underlying goes up
IV. Protective puts can be a useful strategy for an investor holding a long position but with a negative short term view of the markets
- A . I and IV
- B . I, III and IV
- C . II and III
- D . I, II, III and IV
Which of the following is not a money market security
- A . Treasury notes
- B . Treasury bills
- C . Bankers’ acceptances
- D . Commercial paper
In terms of notional values traded, which of the following represents the largest share of total traded futures and options globally?
- A . interest rate products
- B . commodities
- C . foreign exchange futures and options
- D . equity futures and options
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