SOFE Exam SOFA-CFE Topic 3 Question 109 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 109
Topic #: 3

An agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor is called:

ADerivative

BMiscellaneous

CObligatory

DCollar

Show Suggested Answer

Suggested Answer: A

by Denny at Mar 22, 2025, 03:24 PM

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Kimbery

5 days ago

I was leaning towards A) Derivative, but after reading the options again, D) Collar makes more sense. Gotta pay attention to the details!

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Phuong

14 days ago

D) Collar seems like the correct answer here. It's an agreement where you receive payments as the buyer of one option and make payments as the seller of another.

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