ABA CTFA Practice Test - Questions Answers, Page 57

1. Surrender Changes

2. Mortality and Expense risk change

3. Administrative Fees

4. Underlying funds expenses

5. Fees charges for other features

These are the charges which investors pay when they invest in:

Guaranteed investment contracts are contracts between:

When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear(disregarding the impact of dividends). If share are purchased at $50 and the price appreciated to $75, we have ________ on a mark-to-mark basis.

A derivative with a convex payoff-profile at some point before the option's maturity is a simple plan vanilla option. As the option becomes progressively more-in-the money, the rate at which the position makes money increases until a sympathetically approaches the linear payoff of the future. Similarly, as the option becomes progressively more out-of -- the money, the rate at which the position loses money decreases until that rate becomes zero. This is an example of:

One of the largest components of the global derivative markets and natural adjunct to the fixed income markets is the:

A gold producer wants to hedge his loses attributable to a fall in the price of gold for his current gold currency. This is an example of:

An entity that purchases and sells securities on its own behalf is acting as:

Which of the following statements about the over-the-counter market is false?

General Market indices in the commodities market with which many people would be familiar include: