cf35-derivatives-analysis-pilot-paper
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DATE 06 Dec 2025
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About This Document
Document Type: This is a Study Notes, designed for Reviewing core curriculum material.
Context: Standard material from the 2021 academic period.
Key Content: Likely covers essential definitions, structured questions to test your proficiency.
Study Strategy: Summarize these notes into flashcards or mind maps to aid active recall and long-term retention.
Recommendation: comprehensive resource for students aiming to deepen their understanding of General Studies.
Detailed Content Overview
Introduction
This notes resource titled "cf35-derivatives-analysis-pilot-paper" contains valuable educational content for academic study and reference. This resource is structured to facilitate effective learning and retention of important information.
Key Topics Covered
Learning Objectives
- Develop comprehensive understanding of key topics
- Apply learned concepts to real-world scenarios
- Strengthen critical thinking and analytical skills
- Achieve academic excellence in notes
Detailed Summary
CIFA ADVANCED LEVEL PILOT PAPER DERIVATIVES ANALYSIS DECEMBER 2021 Time Allowed: 3 hours Answer ALL questions. Marks allocated to each question are shown at the end of the question. QUESTION ONE (a) With respect to the requirement for posting margin accounts by option holders and writers, explain the distinction of options from forwards and futures. (5 marks) (5 marks) (c) Consider a stock index option that expires in 75 days. The stock index is currently at 1240. 89 and makes no cash payments during the life of the option. Assuming that the stock index has a multiplier of 1 and the risk free rate is 3%, Calculate the lowest and highest possible prices for European style put options on the above stock index with exercise prices of: ke Explain some of the reasons why investors may find options useful. 1225 (3 marks) (ii) 1255 (3 marks) w w w. ch op (i) (d) A stock currently trades at a price of Sh. The stock price can go up to 10% or down 15%.
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CIFA ADVANCED LEVEL PILOT PAPER DERIVATIVES ANALYSIS DECEMBER 2021 Time Allowed: 3 hours Answer ALL questions. Marks allocated to each question are shown at the end of the question. Show ALL your workings. QUESTION ONE (a) With respect to the requirement for posting margin accounts by option holders and writers, explain the distinction of options from forwards and futures. (5 marks) (5 marks) (c) Consider a stock index option that expires in 75 days. The stock index is currently at 1240.89 and m...
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