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AFP CTP Exam Dumps - Valid Questions Answers

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Related AFP Exams

AFP CTP Last Week Results!

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Questions came word by
word from this dump

CTP Questions and Answers

Question # 1

All of the following statements are true about loan participations EXCEPT:

A.

more than one lender commits to them.

B.

loan advances and payments are divided among the participants.

C.

loan servicing is provided by the lead institution.

D.

they are traded in the secondary market.

Question # 2

All of the following items may be found on an income statement EXCEPT:

A.

cost of goods sold.

B.

prepaid expenses.

C.

interest expense.

D.

taxes.

Question # 3

A U.S. company that is expecting to receive a payment of C$1,000,000 purchased a put option of C$1,000,000 at a strike price of 1.75 C$/US$. Two days before the receipt of the payment, the spot rate is 1.85 C$/US$. To maximize its receipt of dollars, the company should do which of the following?

A.

Let the put option expire.

B.

Exercise its put option.

C.

Purchase a call option at 1.85.

D.

Purchase a spot contract at 1.85.

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