SOFE Exam SOFA-CFE Topic 3 Question 109 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 109
Topic #: 3

An agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor is called:

ADerivative

BMiscellaneous

CObligatory

DCollar

Show Suggested Answer

Suggested Answer: A

by Denny at Mar 22, 2025, 03:24 PM

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Fernanda

12 days ago

Hmm, a Collar, huh? Sounds like something you'd wear to a fancy dog party. But hey, at least it's not a Leash or a Choke Chain, right?

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Corazon

16 days ago

B) Miscellaneous? What kind of answer choice is that? Might as well just throw a dart and hope for the best. I'm sticking with D) Collar.

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Harris

24 days ago

C) Obligatory? Really? That's not even a real finance term! I'm going with D) Collar, definitely the most logical choice here.

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Kimbery

1 months ago

I was leaning towards A) Derivative, but after reading the options again, D) Collar makes more sense. Gotta pay attention to the details!

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Chana

8 days ago

Actually, I believe D) Collar is the correct answer.

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Ayesha

16 days ago

I agree, A) Derivative sounds right to me too.

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Milly

27 days ago

I think A) Derivative is the correct answer.

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2 months ago

A) Derivative

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