SOFE Exam AFE Topic 1 Question 88 Discussion

Actual exam question for SOFE's AFE exam

Question #: 88
Topic #: 1

[All AFE Questions]

Dollar rolls differ from regular repurchase agreements due to which of the following characteristics in the securities sold and repurchased.

Athey are represented by different certificates

Bthey are collateralized by different but similar mortgage pools

Cthey generally have different principal amounts

DAll of the above

Show Suggested Answer

Suggested Answer: D

by Flo at Sep 16, 2024, 10:28 PM

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Alpha

7 months ago

Ah, the age-old question of dollar rolls vs. regular repos. I've heard they're as different as a dollar bill and a roll of quarters. Gotta love these finance questions!

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Yvette

6 months ago

C) they generally have different principal amounts

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Junita

6 months ago

B) they are collateralized by different but similar mortgage pools

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Desmond

6 months ago

A) they are represented by different certificates

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Almeta

7 months ago

D for sure! It's like a package deal, you know? The whole shebang is different in dollar rolls compared to regular repos.

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Joaquin

7 months ago

Hmm, I'm not sure about this one. Maybe C? I heard something about the principal amounts being different, but I could be wrong.

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Dorothy

6 months ago

Yes, dollar rolls are collateralized by similar mortgage pools but can have different principal amounts

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Octavio

6 months ago

That makes sense, so the correct answer is C) they generally have different principal amounts

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Ahmad

7 months ago

I agree, the securities sold and repurchased in dollar rolls can have different principal amounts

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Sabra

7 months ago

I think it's D) All of the above

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Alaine

7 months ago

I think the answer is D. Dollar rolls are different from regular repos in multiple ways, including the certificates, collateral, and principal amounts.

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