IFSE Institute LLQP Exam - Topic 2 Question 25 Discussion

Actual exam question for IFSE Institute's LLQP exam

Question #: 25
Topic #: 2

(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?)

A$3,375

B$2,500

C$2,250

D$1,875

Show Suggested Answer

Suggested Answer: B

by Merrilee at Mar 06, 2026, 09:26 PM

Limited Time Offer

25%

Off

Get Premium LLQP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Annamaria

2 days ago

I think Yamina will get $2,250. That's the current value.

upvoted 0 times

...

Clorinda

8 days ago

I feel like she should get at least her initial investment back, so $2,500 makes sense.

upvoted 0 times

...

Precious

13 days ago

The guarantee is 75%. So, 75% of $2,500 is $1,875.

upvoted 0 times

...

Christiane

18 days ago

But she had a guarantee! Shouldn't it be higher?

upvoted 0 times

...

Kiley

23 days ago

I think Yamina will get $2,250. That's the current value.

upvoted 0 times

...

Katie

28 days ago

I lean towards $1,875. The market drop is significant.

upvoted 0 times

...

Dorcas

1 month ago

I feel like $2,500 is a safe bet. It's her initial investment.

upvoted 0 times

...

Brittni

1 month ago

No way, it's definitely $2,250. That's the current value.

upvoted 0 times

...

Jennie

1 month ago

I think Yamina will get $3,375. The guarantee helps.

upvoted 0 times

...

Ora

2 months ago

The guarantee only applies if the value drops below a certain point, right?

upvoted 0 times

...

Lauryn

2 months ago

This seems off, how can she end up with less than her initial investment?

upvoted 0 times

...

Edelmira

3 months ago

Wait, isn't she supposed to get more with the guarantee?

upvoted 0 times

...

Diane

3 months ago

I agree, it's definitely $2,250.

upvoted 0 times

...

Anjelica

4 months ago

Yamina will get $2,250, that's the current value.

upvoted 0 times

...

Evangelina

4 months ago

So, she loses money after all that time? That's surprising!

upvoted 0 times

...

Rueben

4 months ago

I thought the guarantee would cover her initial investment.

upvoted 0 times

...

Sharen

4 months ago

Wait, isn't she guaranteed more than that?

upvoted 0 times

...

Tenesha

4 months ago

I agree, it's definitely $2,250.

upvoted 0 times

...

Becky

5 months ago

Yamina will get $2,250, that's the current value.

upvoted 0 times

...

Rikki

5 months ago

I’m leaning towards option C, but I’m confused about how the guarantee affects the final payout.

upvoted 0 times

...

Mitzie

5 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.

upvoted 0 times

...

Annamae

5 months ago

I remember something about the market value at maturity being important, but I'm not sure how that interacts with the guarantee.

upvoted 0 times

...

Bambi

5 months ago

I think the guarantee structure means she gets at least 75% of her initial investment, which would be $1,875.

upvoted 0 times

...