Soa exam ifm - Study guides, Class notes & Summaries

Determine which of the following is the most likely NOT a typical feature of convertible preferred stock. A Guarantee on initial investment B Anti-dilution protection C Board membership D Participation rights E Liquidation preference - Answer- A Long Floor - Answer- Buy Stock, Buy Put -> Guarantees minimum selling price Written Covered put - Answer- Short stock, short put -> guarantees max loss Long Cap - Answer- Long Stock, short call -> guarantees max purchase pri...

1. to manage risk 2. to speculate 3. to reduce transaction cost 4. to minimize taxes/avoid regulatory issues - Answer- 4 reasons for using derivatives bid price - Answer- the price at which market-makers will buy and end-users will sell ask/offer price - Answer- the price at which market-makers will sell and end-users will buy bid-ask spread - Answer- ask price - bid price round-trip transaction cost - Answer- difference between what you pay and what you receive from a sale using ...

Bull Spread - Call - Long Call (K1) + Short Call (K2), K1<K2 Bull Spread - Put - Long Put (K1) + Short Put (K2), K1 < K2 Bear Spread - Call - Short Call (K1) + Long Call (K2), K1<K2 Bear Spread - Put - Short Put (K1) + Long Put (K2), K1<K2 Box Spread - Long call (put) bull spread + Long put (call) bear spread Ratio Spread - Long and short an unequal number of calls/puts with different strike prices Collar - Long Put (K1) + Short Call (K2), K1<K2 Collared Stock - Long Collar...

SOA IFM EXAM WITH VERIFIED ANSWERS AND QUESTIONS ....

SOA Exam IFM Concepts(Completed)2023

Reasons to use derivatives - answer-1. To manage/reduce risk 2. To speculate - like placing a bet on what will happen in the future 3. To reduce transaction costs 4. To minimize taxes/avoid regulatory issues Market order - answer-a request to buy or sell a stock at the current market price - advantage: can immediately own or sell the stock disadvantage: the price could move more favorably in the future Limit order - answer-An order to a broker to buy a specific stock only if its price ...

SOA IFM Exam With Complete Solutions.

SOA IFM Exam 2022 with complete solution