SOFE Exam SOFA-CFE Topic 9 Question 81 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 81
Topic #: 9

_____________are agreements to buy, sell, effect cash settlement or otherwise exchange securities based on the performance, market price, interest rate, currency price, etc. of an underlying interest.

AProductive measures

BOffshoots

CDerivatives

DNone of eth above

Show Suggested Answer

Suggested Answer: C

by Tarra at Feb 07, 2024, 12:06 PM

Limited Time Offer

25%

Off

Get Premium SOFA-CFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Carol

1 months ago

C'mon, derivatives? I thought this was going to be an easy one. Time to hit the books again.

upvoted 0 times

Bettina

19 days ago

I know, derivatives can be tricky to understand at first.

upvoted 0 times

...

Sheldon

1 months ago

Derivatives, huh? Guess I better brush up on my financial terminology before the big test.

upvoted 0 times

Basilia

3 days ago

Yeah, derivatives involve a lot of different factors. It's important to understand them well.

upvoted 0 times

...

Annamae

6 days ago

I heard derivatives can be pretty complex. Good idea to study up before the test.

upvoted 0 times

...

Martina

2 months ago

Hmm, derivatives... Sounds like something you'd find in a chemistry lab, not a finance exam!

upvoted 0 times

...

Lauran

2 months ago

I agree with Lettie, derivatives are commonly used for hedging risk or speculating on market movements.

upvoted 0 times

...

Lettie

2 months ago

I think it's C) Derivatives because derivatives are financial instruments that derive their value from an underlying asset.

upvoted 0 times

...

Macy

2 months ago

Derivatives, that's the correct answer! I remember learning about these in my finance class.

upvoted 0 times

Carla

29 days ago

Yes, they can be complex but also offer opportunities for risk management and profit.

upvoted 0 times

...

Chuck

1 months ago

It's important to understand how derivatives work before investing in them.

upvoted 0 times

...

Rene

1 months ago

They can be used for hedging or speculation in the financial markets.

upvoted 0 times

...

Lisbeth

2 months ago

I agree, derivatives are financial instruments that derive their value from an underlying asset.

upvoted 0 times

...

Mable

2 months ago

C) Derivatives

upvoted 0 times

...