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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Fernanda

27 days ago

Hmm, a Collar, huh? Sounds like something you'd wear to a fancy dog party. But hey, at least it's not a Leash or a Choke Chain, right?

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Corazon

1 months ago

B) Miscellaneous? What kind of answer choice is that? Might as well just throw a dart and hope for the best. I'm sticking with D) Collar.

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Tony

13 days ago

I think it's A) Derivative.

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Harris

1 months ago

C) Obligatory? Really? That's not even a real finance term! I'm going with D) Collar, definitely the most logical choice here.

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Veronika

2 days ago

Yeah, I agree with you. D) Collar seems like the most logical choice here.

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Mari

2 days ago

B) Miscellaneous

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Tina

12 days ago

I'm going with D) Collar, it just sounds like the right answer.

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Timothy

12 days ago

A) Derivative

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Dolores

15 days ago

I think it's A) Derivative, that makes the most sense to me.

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Kimbery

2 months 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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Zachary

14 days ago

Oh, really? I'll have to reconsider my choice then.

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Chana

24 days ago

Actually, I believe D) Collar is the correct answer.

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Ayesha

1 months ago

I agree, A) Derivative sounds right to me too.

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Milly

1 months ago

I think A) Derivative is the correct answer.

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Phuong

2 months 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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Kenneth

1 months 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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