derivatives-analysis-past-papers
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UPLOADED BY Unknown
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DATE 06 Dec 2025
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SIZE 3.13 MB
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notes
About This Document
Document Type: This is a Past Paper, designed for Reviewing previous question patterns.
Context: Standard material from the 2025 academic period.
Key Content: Likely covers essential definitions, structured questions to test your proficiency.
Study Strategy: Attempt these questions under timed conditions to simulate a real exam environment, then check against your notes.
Recommendation: comprehensive resource for students aiming to deepen their understanding of General Studies.
Detailed Content Overview
Introduction
This notes resource titled "derivatives-analysis-past-papers" provides comprehensive exam preparation materials designed to test and enhance your understanding. This resource is structured to facilitate effective learning and retention of important information.
Key Topics Covered
Learning Objectives
- Master key concepts required for examination success
- Practice answering exam-style questions effectively
- Develop time management skills for timed assessments
- Identify and address knowledge gaps in understanding
Detailed Summary
CIFA ADVANCED LEVEL DERIVATIVES ANALYSIS WEDNESDAY: 20 August 2025. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper. QUESTION ONE (a) Describe THREE types of traders in the derivatives market. (1 mark) (iii) Justify your answer in (b) (ii) above. ch Purity Achieng enters a short futures contract at an initial margin deposit of Sh. 10,000 and a maintenance margin requirement of Sh. The futures price fluctuates on a daily basis and Achieng records the following: Day 0 1 2 3 4 5 6 Futures price 100 100 92 110 105 115 106 Additional information: Achieng goes short 1,000 futures contract. Required: (i) Explain the term “marking to market” process. (ii) Determine the ending balance of Purity Achieng’s account in day 6. QUESTION TWO (a) Discuss THREE limitations of the Black Scholes Merton (BSM) Model. (b) (2 marks) (6 marks) (Total: 20 marks) (6 marks) A two-period binomial model on Kijani Ltd. shares that is currently trading at Sh. 65 is being considered by Marcus Otis.
Study Tips & Recommendations
Time Management
Practice under timed conditions to improve speed and accuracy. Allocate specific time limits to each section.
Active Practice
Attempt all questions before checking answers. Review mistakes to understand where improvements are needed.
Mark Scheme Review
Study marking schemes carefully to understand how examiners award points and structure your answers accordingly.
Regular Review
Schedule periodic reviews to reinforce learning and combat forgetting. Use spaced repetition for optimal retention.
Content Preview
CIFA ADVANCED LEVEL DERIVATIVES ANALYSIS WEDNESDAY: 20 August 2025. Morning Paper. Time Allowed: 3 hours. Answer ALL questions. Marks allocated to each question are shown at the end of the question. Show ALL your workings. Do NOT write anything on this paper. QUESTION ONE (a) Describe THREE types of traders in the derivatives market. (1 mark) (iii) Justify your answer in (b) (ii) above. (2 marks) w .ch Purity Achieng enters a short futures contract at an initial margin deposit of Sh.10,000 and a...
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