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Related GARP Exams

GARP 2016-FRR Last Week Results!

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Questions came word by
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2016-FRR Questions and Answers

Question # 1

Which one of the following four exercise features is typical for the most exchange-traded equity options?

A.

Asian exercise feature

B.

American exercise feature

C.

European exercise feature

D.

A shout option exercise feature

Question # 2

The exercise for an American type option prior to expiration day is virtually certain in the following case:

A.

In the event of a high dividend for an in-the-money call option

B.

In the event of a high dividend for an in-the-money put option

C.

In the event of a low dividend for an in-the-money call option

D.

In the event of a low dividend for an in-the-money put option

Question # 3

Which of the following statements describes correctly the objectives of position mapping ?

A.

For VaR calculations, mapping converts positions based on their deltas to underlying factor risks.

B.

Position mapping models risk factors affecting the value of a position as combination of core risk factors used in the VaR calculations.

C.

Position mapping groups similar positions into one group based on the closeness of their respective VaR.

D.

Position mapping reduces the possible number of risk factors to a computationally manageable level.

E.

I and II

F.

II and IV

G.

I, II and III

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