# Thread: FRM and general information

1. The put is in the money, so the put buyer will get 10. However the call buyer will lose the money.

2. The answer shud be C.

Thanks for giving Q&A reg FRM. I visited ur website and found that u basically assist student reg CSI. Can u plz briefly explain abt that..??

Regards,
Shubhojit.

3. Thanks Financetutelage for starting this initiative. All the best!

4. Yes, you got it the answer is D.

Solution:
Let X= Strike Price and S = stock price, then
Payoff for put buyer = max (0, X - S) = max (0, 70-60) = 10
Payoff for put writer = -max (0, X – S) = -max(0, 70-60) = -10
Payoff for call buyer = max(0, S – X) = max(0, 60-90) = 0
Payoff for call writer = -max(0, S – X) = -max(0, 60-90)=0

5. 2. Compute the forward price given payoff to long position is \$20 and spot price at maturity is \$30

A. \$-10
B. \$50
C. \$10
D. -\$50

6. ## CSC from CSI details financetutelage.com

CSI offers CSC same as other certificaitons like FRM from GARP. Keep visiting www.financetutelage.com to learn more on global financial certifications

7. Forward price should be \$50 as the long position will make profit of \$20 above the spot price.

8. I guess it should be option D.

Btw, certification from CSI is recognized all over the world ?? I hv no idea abt it. Plz clarify.

Regards,

Solution: Payoff to long position = spot price at maturity – Forward price
i.e., Forward Price = spot price at maturity - Payoff to long position
= 30 – 20
Forward price = \$10

10. ## FRM L1 Question3

3. Choose answers that apply to Clearinghouse

A. Acts as a counterparty for every trade that takes place in the exchange
B. Members must post a clearing margin to the clearinghouse
C. Clearinghouse can never default
D. All of the above