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IFSE Institute LLQP Exam - Topic 2 Question 25 Discussion

(Ten years ago, Yamina invested $2,500 in a segregated fund contract with a 75%/100% guarantee structure. The market value of the contract peaked at $4,500 but then fell. Now, at maturity, the units are worth $2,250.How much can Yamina expect to receive?)
B) $2,500
A) $3,375
C) $2,250
D) $1,875

IFSE Institute LLQP Exam - Topic 2 Question 25 Discussion

Actual exam question for IFSE Institute's LLQP exam
Question #: 25
Topic #: 2
[All LLQP Questions]

(Ten years ago, Yamina invested $2,500 in a segregated fund contract with a 75%/100% guarantee structure. The market value of the contract peaked at $4,500 but then fell. Now, at maturity, the units are worth $2,250.

How much can Yamina expect to receive?)

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Suggested Answer: B

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Ora
3 days ago
The guarantee only applies if the value drops below a certain point, right?
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Lauryn
8 days ago
This seems off, how can she end up with less than her initial investment?
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Edelmira
2 months ago
Wait, isn't she supposed to get more with the guarantee?
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Diane
2 months ago
I agree, it's definitely $2,250.
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Anjelica
2 months ago
Yamina will get $2,250, that's the current value.
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Evangelina
2 months ago
So, she loses money after all that time? That's surprising!
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Rueben
2 months ago
I thought the guarantee would cover her initial investment.
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Sharen
3 months ago
Wait, isn't she guaranteed more than that?
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Tenesha
3 months ago
I agree, it's definitely $2,250.
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Becky
3 months ago
Yamina will get $2,250, that's the current value.
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Rikki
3 months ago
I’m leaning towards option C, but I’m confused about how the guarantee affects the final payout.
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Mitzie
3 months ago
If the units are worth $2,250 now, does that mean she just gets that amount? I feel like I saw a similar question in practice.
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Annamae
4 months ago
I remember something about the market value at maturity being important, but I'm not sure how that interacts with the guarantee.
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Bambi
4 months ago
I think the guarantee structure means she gets at least 75% of her initial investment, which would be $1,875.
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