ICMA FMFC - Financial Markets Foundation Course Exam
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Total 50 questions
Question #1 (Topic: )
You have bought a call option on a stock at a strike of EUR 29, and paid a premium of EUR
1.5 for this option. What is your breakeven price on this position?
1.5 for this option. What is your breakeven price on this position?
A. EUR 27.50
B. EUR 29.00
C. EUR 30.50
D. EUR 32.00
Answer: C
Question #2 (Topic: )
What type of bond is a "Yankee" bond?
A. Government bond
B. Eurobond
C. Domestic foreign bond
D. Global bond
Answer: C
Question #3 (Topic: )
Which of the following would not be expected to execute market deals?
A. Salesperson
B. Trader
C. Operations manager
D. Fund manager
Answer: C
Question #4 (Topic: )
Which of the following is NOT a vlue-weighted index?
A. S&P 500
B. FTSE10C0
C. CAC40
D. DJIA
Answer: D
Question #5 (Topic: )
Futures contracts are described as fungible (i.e. each contract is the same as all others).
Why is this true?
Why is this true?
A. Because the contract terms are negotiable
B. Because the contract periods run consecutively
C. Because the clearing house acts as a counterparty to all trades
D. Because the clearing house is allowed to run long and short positions
Answer: C
