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CWM_LEVEL_2 Reviews Questions

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Total 1259 questions

Chartered Wealth Manager (CWM) Certification Level II Examination Questions and Answers

Question 85

Section C (4 Mark)

Suppose Nifty is at 4500 in May. An investor, Mr. A, executes a Long Strangle by buying a Rs. 4300 Nifty Put for a premium of Rs. 23 and a Rs 4700 Nifty Call for Rs 43.

What would be the Net Payoff of the Strategy?

• If Nifty closes at 4232

• If Nifty closes at 5241

Options:

A.

2 and 475

B.

120 and -431

C.

91 and 145

D.

45 and 51

Question 86

Section B (2 Mark)

Lokesh purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 for Rs. 25,00,000/-.As a CWM® calculate the Indexed Cost of Acquisition on which capital gain would be calculated. (The CII of year 1995-96 is 281, for year 1996-97 is 305, for year 2005-06 is 497 and for year 2006-07 is 519).

Options:

A.

17,01,639

B.

18,46,975

C.

17,68,683

D.

16,29,508

Question 87

Section B (2 Mark)

All of the following are assumptions made by technical analysts except:

Options:

A.

Changes in trend are caused by shifts in supply and demand relationships.

B.

Stock price movements are independent.

C.

Security prices tend to move in trends.

D.

Supply and demand of securities are determined by various factors.

Question 88

Section B (2 Mark)

Which one of the following statements is/are correct?

Options:

A.

(i) only

B.

(ii) only

C.

Both are correct

D.

Both are incorrect

Page: 22 / 47
Total 1259 questions