IIA Exam IIA-CFSA Topic 7 Question 40 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 40
Topic #: 7

____________ is a form of insurance, to move risk from someone major loss to someone who could absorb the loss, or is able to hedge against the risk by buying some other derivative.

AFuture

BOption

CSwap

DAll the derivatives

Show Suggested Answer

Suggested Answer: D

by Daniela at Oct 20, 2023, 12:28 PM

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Mica

2 months ago

I'm gonna have to swap out my answer a few times before I get this right. Gotta keep my options open, you know?

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Dustin

2 months ago

D) All the derivatives is the way to go! Insurance is all about managing risk, and these derivatives are the tools to do it. Easy peasy!

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Lili

30 days ago

D) All the derivatives

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Shawna

1 months ago

C) Swap

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Hyman

1 months ago

B) Option

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Willodean

2 months ago

A) Future

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Yuette

2 months ago

Hmm, this is a tricky one. I'm gonna go with C) Swap. Swaps are a common way to transfer risk in financial markets.

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Alverta

1 months ago

I agree with you, C) Swap is a form of insurance that allows parties to exchange cash flows based on a notional amount.

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Ranee

2 months ago

I believe it's D) All the derivatives. Derivatives are financial instruments that derive their value from an underlying asset.

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Billye

2 months ago

I think it's A) Future. Futures contracts are a type of derivative used to hedge risk.

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Cortney

3 months ago

Option B) Option seems like the best choice to me. Options are a type of derivative that can be used to hedge against risk.

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Lyda

1 months ago

All the derivatives can provide a comprehensive approach to risk management.

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Valene

1 months ago

Swaps are another form of insurance that can help mitigate potential losses.

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Joseph

2 months ago

I think futures can also be a good choice for managing risk.

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Jackie

2 months ago

I agree, options are a great way to hedge against risk.

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Diane

3 months ago

I think the correct answer is D) All the derivatives. Insurance is a way to transfer risk, and all the options listed are derivatives that can be used for this purpose.

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