CFA Level 3 Risk Management — practice questions
22 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CFA Level 3 Risk Management in the app →Acting to reduce a firm's exposure to a risk it already faces is called:Betting on a future outcome in order to profit from it is called:Merging with its own supplier to control input prices is a firm's use of vertical:Although it reduces commodity price risk, that strategy is described as not being a perfect:An agreement with a supplier fixing terms for years ahead is a hedge using a contract that is:Unlike a private supply agreement, a futures contract is traded on an:Futures exchanges require traders to post collateral known as:Because of that requirement, a futures contract avoids the long-term contract's:Currency exposures are classified as translation, economic and:A private agreement between two parties to swap currencies on a set future date is a:Both parties to that agreement are under a contractual:A contract giving the owner the right but not the obligation to trade an asset is a financial:Because their value comes from another asset, options are classed as:The most common option contracts are written on shares of:The fixed price written into an option contract is called the:The price paid up front to buy an option contract is called the:Choosing to trade at the strike price under an option is described as:If the option is not exercised by its date, the contract will simply:Concerning whether an option is exercised, the writer of the option has:A trader buying spare stock because prices may rise, purely to protect against that rise, is:A futures contract is described as standardised, meaning its terms are not:The exposure a coffee chain faces from volatile bean prices is commodity price: