Free PRMIA 8002 Exam Actual Questions

The questions for 8002 were last updated On Nov 7, 2024

Question No. 1

The natural logarithm of x is:

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Correct Answer: A

Question No. 2

An underlying asset price is at 100, its annual volatility is 25% and the risk free interest rate is 5%. A European call option has a strike of 85 and a maturity of 40 days. Its Black-Scholes price is 15.52. The options sensitivities are: delta = 0.98; gamma = 0.006 and vega = 1.55. What is the delta-gamma-vega approximation to the new option price when the underlying asset price changes to 105 and the volatility changes to 28%?

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Correct Answer: D

Question No. 3

Suppose that f(x) and g(x,y) are functions. What is the partial derivative of f(g(x,y)) with respect to y?

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Correct Answer: D

Question No. 4

Identify the type and common element (that is, common ratio or common difference) of the following sequence: 6, 12, 24

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Correct Answer: C

Question No. 5

A linear regression gives the following output:

Figures in square brackets are estimated standard errors of the coefficient estimates. What is the value of the test statistic for the hypothesis that the coefficient of is zero against the alternative that is less than zero?

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Correct Answer: D