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  • Exam Name: Securities Operations Foundation Qualification (SOFQ)
  • Last Update: 19-Apr-2024
  • Questions and Answers: 50
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SOFQ Questions and Answers

Question # 1

A 'put' option on a bond allows:

A.

The stock exchange to force the bondholder to redeem the bonds prior to the bond's scheduled maturity date

B.

The regulator to force the issuer to redeem the bonds prior to the bond's scheduled maturity date

C.

The bondholder to redeem their bonds prior to the bond's scheduled maturity date

D.

The bond issuer to force redemption of bonds prior to the bond's scheduled maturity date

Question # 2

A S.W.I.FT. 'Bank Identifier Code' comprises::

A.

A region code, a country code and a city code

B.

A bank code, a country code and a location code

C.

A continent code, a country code and a municipality code

D.

A bank code, a continent code and a currency code

Question # 3

Where Firm A has borrowed a fixed cash amount on a secured basis from Firm B, an increase in the collateral value means that:

A.

Firm A has exposure and must return some collateral to Firm B

B.

FirmB has exposure and must request additional collateral from Firm A

C.

Firm B has exposure and must request the return of collateral from Firm A

D.

Firm A has exposure and must request the return of some collateral from Firm B

Question # 4

Thefollowing is an inaccurate statement:

A.

Warrants have a variable exercise price

B.

Warrants are exercisable by the warrant holder

C.

Warrants will expire if not exercised by the expiry date

D.

Warrants are detachable from the original security

Question # 5

A cash amount of GBP 5,909,658.47 lent on a Thursday until the second Monday (just over 1 week later) at a rate of 2.973%, would attract:

A.

7 days of interest and a cash interest amount of GBP 3369.48

B.

9 days of interest and a cash interest amount of GBP 4392.35

C.

13 days of interest and a cash interest amount of GBP 6344.51

D.

11 days of interest and a cash interest amount of GBP 5294.89

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