Medium Quantitative Finance Practice Questions

278 free medium-difficulty Quantitative Finance questions, drawn live from KomFi's calibrated bank. The exam backbone: the difficulty band where most scoring happens.

1. Given a continuously compounded risk-free rate of 5%, what is the price of the corresponding European put opti
2. If the risk-free growth factor is e^rT = 1.02, what is the risk-neutral probability p^* of an upward move?
3. What is the value of the d_1 parameter in the Black-Scholes formula?
4. If the terminal nodes for the stock are 132.69, 100.00, and 75.36, what is the estimated value of the put toda
5. A trader buys a bull call spread by purchasing a call at K_1… — What is the maximum possible profit for this s
6. If the underlying asset moves by $3 in one day, what is the approximate net profit or loss for the day?
7. If the risk-free growth factor over the period is 1.02, what is the risk-neutral probability p^* of an up move
8. Given S_0 = 50, K = 52, r = 4%, T = 0.5, and a risk-neutral probability of finishing in-the-money of 42%, what
9. If the stock price is $50, the strike is $52, expiry is 6 months, the rate is 4%, and the volatility is 35%, w
10. If their correlation is ρ = 0.40, what is the 'spread volatility' hatσ required to price an exchange option be
11. A trader is long 50,000 shares worth of options with a per-share gamma of Gamma = 0.04 and a daily theta of Th
12. If the underlying asset moves by Δ S = $1.50 over one day, and the risk-free rate is negligible, what is the e
13. A desk is pricing a binary cash-or-nothing call option that pays $100 if the stock price at maturity T is abov
14. A desk is pricing a binary (digital) cash-or-nothing call option that pays $100 if S_T > K. Which Greek variab
15. What is the theoretical delta of a European put option with the same strike and maturity?
16. As the option approaches expiry and the stock is very near the strike, what is the primary risk-management cha
17. A stock currently at $100 will move to either $120 or $90 in one period. The risk-free growth factor over the
18. A stock has a volatility of σ = 40%. According to the standard approximation for a continuous geometric Asian
19. In the Black-Scholes-Merton framework, calculate the value of d_2 for a European call option with S_0 = 100, K
20. A stock's path over a week is recorded as follows: Monday: 100 (Start), Tuesday: 104, Wednesday: 98, Thursday:
21. If the risk-neutral probability p is approximately 0.5539 and the up-factor u is 1.1519, what is the fair valu
22. If r = 4%, T = 0.5, and σ = 35%, what is the Delta (%) of this call option?
23. If the risk-free rate is r = 5% and the call is currently trading at C = $8, what must be the price of the cor
24. A Heston stochastic volatility model is calibrated with para… — Does this parameter set satisfy the Feller con
25. A stock trades at S_0 = $50. Calculate the value of a cash-or-nothing binary call option that pays $100 if the
26. Based on Put-Call Parity, what arbitrage trade should be executed?
27. If the risk-neutral up-probability is p = 0.5539 and the discount factor for one step is e^-rΔ t = 0.9753, wha
28. A stock is modeled using a two-step binomial tree over T = 1 year with Δ t = 0.5. The current price is S_0 = 1
29. A stock trades at S₀ = 100. In a one-period binomial tree, the price can move to S_u = 120 or S_d = 90. The ri
30. In the Black-Scholes PDE, (partial V)/(partial t) + rS(partial V)/(partial S) + (1)/(2)σ^2S^2fracpartial^2 Vpa

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