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CWM_LEVEL_2 – Chartered Wealth Manager (CWM) Certification Level II Examination

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Showing 4–6 of 20 questions

Question 4

Section C (4 Mark)

Suppose an investor Mr. A buys or is holding ABC Ltd. currently trading at Rs. 4758. He decides to establish a collar by writing a Call of strike price Rs. 5000 for Rs. 39 while simultaneously purchasing a Rs. 4700 strike price Put for Rs. 27. Since he pays Rs. 4758 for the stock ABC Ltd., another Rs. 27 for the Put but receives Rs. 39 for selling the Call option, his total investment is Rs. 4746.

What would be the Net Payoff of the Strategy?

• If ABC Ltd closes at 4851

• If ABC Ltd closes at 5267

Select an option, then click Submit answer.

  • ○

    105 and 254

  • ○

    214 and 154

  • ○

    0 and 124

  • ○

    -46 and 4


Question 5

Section A (1 Mark)

Nifty is a ………………

Select an option, then click Submit answer.

  • ○

    Hybrid index

  • ○

    Equal weighed index

  • ○

    Price weighted index

  • ○

    Value weighted index


Question 6

Section C (4 Mark)

To create a common size income statement ____________ all items on the income statement by ____________.

Select an option, then click Submit answer.

  • ○

    multiply; net income

  • ○

    multiply; total revenue

  • ○

    divide; net income

  • ○

    divide; total revenue