derivatives — CFA Level I Practice Questions

23 free CFA Level I questions on derivatives: 5 easy, 12 medium, and 6 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn derivatives from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. Vesper Foods stock is at 60. A European call with K = 55 is 8.00. A European put with K = 55 is 2.00. If PV(K)
2. According to the put-call parity relationship c + Ke^-rT = p + S_0, which of the following is an accurate desc
3. Meridian Pack stock is at 80. A one-year European put with K = 80 is 4.50. The risk-free rate is 5% (r = 0.05)
4. The amount Aether Energy receives is closest to:
5. If an investor borrows the price currency, converts it to the base currency at the spot rate, and invests the
6. The amount Oakridge Capital must pay is closest to:
7. The payment Helion Rail receives is closest to:
8. Using the put-call parity relationship for European options, an investor can create a synthetic long position
9. The payment Lumina Health receives is closest to:
10. If the risk-free rate is 5%, the risk-neutral probability of an up-move is closest to:
11. If the 180-day reference rate at settlement is 3.40%, the payment received is closest to:
12. The settlement amount is:
13. The settlement receipt is closest to:
14. If the call trades at 4.50, the arbitrage-free price of the put is closest to:
15. According to put-call parity (c + Ke^-rT = p + S), the manager should:
16. According to put-call parity (assuming no dividends), the price of a 1-year European put option with an exerci
17. A 'long' position in a put option by Juniper Health is best described as a:
18. In a futures contract for Kestrel Grid, what happens to the contract value immediately after the daily variati
19. If Redhook Ports stock is trading at S_0 = 60 and the forward price for delivery in one year is F_0 = 63, what
20. Kestrel Grid is long a natural gas futures contract. If the market is in contango and the spot price of natura
21. Juniper Health identifies a market in 'backwardation'. This suggests that the 'convenience yield' is:
22. Using a one-period binomial model, the risk-neutral probability of an up-move (π) is closest to:
23. Lumen Credit issues a non-dividend-paying stock. An American call option on this stock is most likely to be va