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Question 1

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The Correct Answer is Clients fairly relative to other clients.
The Standard relating to fair dealing refers to treating:

Question 2

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The Correct Answer is Clients' interests ahead of their personal interests.
One of the six components of the CFA Institute Code of Ethics requires members to place their:

Question 3

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The Correct Answer is Long asset position and a short derivative position.
A long position in a risk-free bond can be replicated by combining a:

Question 4

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The Correct Answer is Adjusts the note's coupon for the difference in the credit risk of the issuer and that implied by the reference rate.
The quoted margin on a floating-rate note:

Question 5

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The Correct Answer is Both at the start and at the end of the swap.

In a currency swap, the underlying principal amount is exchanged:

Question 6

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The Correct Answer is Dividends from the underlying.

All else being equal, for an equity option, the value of an American call differs from that of a European call due to the:

Question 7

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The Correct Answer is On-the-run Treasury securities only.

When using the bootstrapping method to calculate a theoretical U.S. Treasury spot-rate curve, the most commonly used securities are:

Question 8

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The Correct Answer is Lower than the dirty price.

If a fixed-rate bond is traded between two coupon payment dates, the bond’s flat price is most likely:

Question 9

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The Correct Answer is 30 basis points.

The Z-spread of a 2-year callable bond is 35 basis points. If the value of the embedded call option is 5 basis points per year, the option-adjusted spread is:

Question 10

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The Correct Answer is A long position in a put and a short position in a call.

According to put–call parity, an investor can create a long position in a risk-free bond by adding which of the following to his long position in the underlying?