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

2 months 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

2 months 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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Frederick

18 days ago

I'm not sure, but I'll go with A) Derivative.

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Alyce

19 days ago

I agree with you, I'll choose D) Collar.

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Joseph

28 days ago

I'm going with C) Obligatory.

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Tony

1 months ago

I think it's A) Derivative.

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Harris

2 months 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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Dierdre

16 days ago

I agree, Collar makes the most sense in this context.

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Hillary

18 days ago

Collar is the correct term for this agreement.

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Virgilio

19 days ago

D) Collar

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Melda

28 days ago

C) Obligatory

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Veronika

1 months ago

Yeah, I agree with you. D) Collar seems like the most logical choice here.

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Mari

1 months ago

B) Miscellaneous

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Tina

1 months ago

I'm going with D) Collar, it just sounds like the right answer.

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Timothy

1 months ago

A) Derivative

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Dolores

1 months ago

I think it's A) Derivative, that makes the most sense to me.

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Kimbery

3 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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Zachary

1 months ago

Oh, really? I'll have to reconsider my choice then.

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Chana

2 months ago

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

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Ayesha

2 months ago

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

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Milly

2 months ago

I think A) Derivative is the correct answer.

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Phuong

3 months ago

D) Collar seems like the correct answer here. It's an agreement where you receive payments as the buyer of one option and make payments as the seller of another.

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Kenneth

2 months ago

D) Collar seems like the correct answer here. It's an agreement where you receive payments as the buyer of one option and make payments as the seller of another.

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