Online Access Free FMFC Exam Questions

What is the credit spread on a corporate bond?

• A.The difference between the coupon rate of a corporate bond and the dividend of the issuing company
• B.The difference in price between a corporate bond and a benchmark treasury
• C.The additional yield required by investors to offset the credit risk of the security
• D.The increased size of the bid/ask spread in a trade price

Which market regulation introduced the requirement for guaranteeing Best Execution in the
Equities market?

• A.Dodd-Franks
• B.MiFID
• C.EMIR
• D.Basel II

Which of the following would be considered a consumption asset?

• A.Land
• B.Heavy equipment
• C.Buildings
• D.Food and drink

You have bought a call option on a stock at a strike of EUR 29, and paid a premium of EUR
1.5 for this option. What is your breakeven price on this position?

• A.EUR 30.50
• B.EUR 32.00
• C.EUR 27.50
• D.EUR 29.00

The process by which a central clearing corporation manages its credit risk is known as:?

• A.Matching
• B.Margining
• C.Migrating
• D.Maturing