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Ace Your CWM_LEVEL_2 Chartered Wealth Manager Exam

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Total 1259 questions

Chartered Wealth Manager (CWM) Certification Level II Examination Questions and Answers

Question 141

Section C (4 Mark)

Mr. XYZ buys a Nifty Call with a Strike price Rs. 4100 at a premium of Rs. 170.45 and he sells a Nifty Call option with a strike price Rs. 4400 at a premium of Rs. 35.40.

What would be the Net Payoff of the Strategy?

• if Nifty closes at 4200

• if Nifty closes at 5447

Options:

A.

145.95 and -75.05

B.

-35.05 and 164.95

C.

145.85 and -65.50

D.

25.05 and 154.25

Question 142

Section A (1 Mark)

----------- shifts the weights of securities in the portfolio to take advantage of areas that are expected to do relatively better than other areas.

Options:

A.

Portfolio management

B.

Market timing

C.

Momentum strategy

D.

Sector rotation

Question 143

Section B (2 Mark)

IFB Stock currently sells for Rs38. A one-year call option with strike price of Rs45 sells for Rs9, and the risk free interest rate is 4%. What is the price of a one-year put with strike price of Rs45?

Options:

A.

Rs. 9.00

B.

Rs. 12.89

C.

Rs. 16.00

D.

Rs. 18.72

Question 144

Section A (1 Mark)

Which of the following is not a characteristic of defined benefit plan?

Options:

A.

Benefit levels are guaranteed

B.

These plans are easy to design and explain to employees

C.

actuarial assumptions are necessary to determine actual contribution amounts

D.

Employer is subject to a recurring annual funding obligation

Page: 36 / 47
Total 1259 questions