50 Free CFA Level 2 Practice Exams 2015 on Derivatives with Instant Answers

50 Free CFA Level 2 Practice Exams 2015 on Derivatives with Instant Answers are the best solution to your exam prep which refine your critical thinking and revise your knowledge thoroughly. Beside reviewing your specific knowledge, our CFA online sample exams aim to help your familiarity with the exam condition and make your exam study more trouble-free. Thanks to such a way of design, you can take an ample chance to familiarize with the actual exam conditions and be more confident in dealing with them. Apart from these multiple choice questions, there’re also available other practice tests on Derivatives for your practice. Wish your next exam a great success!
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= Max of 0 or [(One-Year Rate - Cap Rate) * Principal] / (1 + One-Year Rate)

• protective put
• interest rate cap
• expiration value of caplet
• expiration value of floorlet

probability of default given that it has not already occured

• Fair price of T-Bond future
• fair price of long position with dividend
• value of long position
• hazard rate or conditional probability rate

a combination of long stock and a put (with exercise price of x matures in T) on the stock

• put call parity
• protective put
• CDS price
• swaption

= storage costs - convenience yield

• net benefit (NB)
• normal contango
• net costs (NC)
• CDS spread

The standard deviation of stock returns that is consistent with an option's market value

• implied volatility
• payer swaption
• interest rate cap
• put call parity

The condition in futures markets in which futures prices are lower than expected spot prices.

• swap rate
• normal contango
• net costs (NC)
• swaption

= Spot - Forward

• value of short position
• value of long position
• value of futures contract
• payer swaption

= current futures price - previous mark to market price

• value of short position
• value of futures contract
• Ft currency forward contract
• value of long position

= S x [e^(Rf-div.yield) x t]

• Fair price of an equity
• value of long position with dividend
• fair price of long position with dividend
• Fair price of an equity with continuous dividend

= (CDS spread - CDS coupon) * duration

• upfront premium %
• protective put
• CDS price
• T-bond futures

Delta: relationship between asset and option - the slope of the of the prior-to-expiration curveVega: volatility and optionRho: interest rate and optionTheta: time and option

• CDS spread
• delta
• The greeks
• curve trade