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 Apr 23,2025.
- Exam Code: 8006
- Exam Name: PRM Certification - Exam I: Finance Theory, Financial Instruments, Financial Markets – 2015 Edition
- Certification Provider: PRIMA
- Latest update: Apr 23,2025
The yield to maturity for a zero coupon bond is equivalent to:
- A . short rates for the maturity of the bond
- B . the coupon rate for the bond
- C . forward rates for the maturity of the bond
- D . the spot rate from now till t years, where t is the maturity of the bond
If zero rates with continuous compounding for 4 and 5 years are 4% and 5% respectively, what is the forward rate for year 5?
- A . 5%
- B . 9%
- C . 9.097%
- D . 7%
According to the CAPM, the expected return from a risky asset is a function of:
- A . how much the risky asset contributes to portfolio risk
- B . diversifiable risk that the asset brings
- C . the riskiness, ie the volatility of the risky asset alone
- D . all of the above
A trader finds that a stock index is trading at 1000, and a six month futures contract on the same index is available at 1020. The risk free rate is 2% per annum, and the dividend rate is 1% per annum.
What should the trader do?
- A . Buy the index spot and sell the futures contract
- B . Buy the futures contract and sell the index spot
- C . Buy the index spot and buy the futures contract
- D . Sell the futures contract
A portfolio comprising a long call and a short put option has the same payoff as:
- A . a long underlying asset and a short bond position
- B . a short underlying asset and a short bond position
- C . a long underlying asset and a long bond position
- D . a short underlying asset and a long bond position
A utility function expresses:
- A . Risk probabilities
- B . Risk alternatives
- C . Risk assessment
- D . Risk attitude
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.
- A . $2,081
- B . $1,201
- C . $1,204
- D . $4,330,000
An investor has a bullish outlook on the market.
Which of the following option strategies would suit him?
I. Risk reversal
II. Collar
III. Bull spread
IV. Butterfly spread
- A . II and IV
- B . I, III and IV
- C . I and III
- D . I, II, III and IV
Suppose the S&P is trading at a level of 1000. Using continuously compounded rates, calculate the futures price for a contract expiring in three months, assuming expected dividends to be 2% and the interest rate for futures funding to be 5% (both rates expressed as continuously compounded rates)
- A . $1,007.50
- B . $1,000.00
- C . $1,007.53
- D . $1,012.58
How are foreign exchange futures quoted against the US dollar?
- A . Futures forex prices are always quoted as the number of units of the foreign currency that one US dollar can buy
- B . It depends upon the currency – futures forex prices follow the same convention as for spot prices
- C . Futures forex prices are always quoted as the number of US dollars one unit of the foreign currency can buy
- D . It can be quoted either way, based on whether the contract is for a short maturity or long
Latest 8006 Dumps Valid Version with 286 Q&As
Latest And Valid Q&A | Instant Download | Once Fail, Full Refund
