Free PRMIA 8013 Exam Questions

Become PRMIA Certified with updated 8013 exam questions and correct answers

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Total 290 Questions | Updated On: Dec 17, 2025

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Question 1

A bank sells an interest rate swap to its client, with the client agreeing to pay the bank a fixed 4% and receive 3 month LIBOR + 100 basis points, payments due every quarter. After quarter 1, the 3 month LIBOR is 2% pa. Which of the following payments will happen in respect of this swap, assuming the contract notional is $100m, and the rate convention is 30/360.

A : Bank pays customer $1,000,000 and customer pays the bank $750,000

B : Bank pays customer $250,000

C : Customer pays bank $250,000

D : Bank pays customer $1,000,000

Answer: C

Question 2

Callable corporate bonds:

A : generally yield less than non-callable bonds due to the call feature

B : need to be priced lower than non-callable bonds to make them attractive to investors

C : are more convex than their non-callable counterparts

D : are generally called when their prices have fallen below the issuance price

Answer: B

Question 3

A fund manager buys a gold futures contract at $1000 per troy ounce, each contract being worth 100 ounces of gold. Initial margin is $5,000 per contract, and the exchange requires a maintenance margin to be maintained at $4,000 per contract. Prices fall the next day to $980. What is the margin call the fund manager faces in respect of daily variation margin ?

A : $1000

B : $2000

C : $7000

D : $0

Answer: B

Question 4

Which of the following have a negative gamma:I. a long call positionII. a short put positionIII. a short call positionIV. a long put position

A : III and IV

B : I and IV

C : II and III

D : I and II

Answer: C

Question 5

An early exercise of an American call option is advisable whenever the option is deep in the money and delta approaches 1

A : An early exercise of an American call option is advisable whenever the option is deep in the money and delta approaches 1

B : An early exercise of an American call option may be justified if an extraordinarily large dividend payment is imminent

C : An early exercise of an American call option is never a good idea as an option is always worth more alive than when it is dead

D : An early exercise of an American option, if ever to be done, should be done immediately after an exdividend date

Answer: B

Page: 1 / 58

Total 290 Questions | Updated On: Dec 17, 2025

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