Practice CWM_LEVEL_2 Exam Online

Question 1

Section A (1 Mark)

The borrower's attitude toward his or her credit obligations is called:

A : Capacity.

B : Capital.

C : Character.

D : Collateral.

Answer: C

Question 2

Section A (1 Mark)

Trading horizon is ______________

A : stated in money terms

B : calculated as the opportunity lost

C : calculated in number of days

D : None of the above

Answer: C

Question 3

Section C (4 Mark)

Mr. Peter sells a Nifty Put option with a strike price of Rs. 4000 at a premium of Rs. 21.45 and buys a further OTM Nifty Put option with a strike price Rs. 3800 at a premium of Rs. 3.00 when the current Nifty is at 4191.10, with both options expiring on 31st July.

What would be the Net Payoff of the Strategy?

* If Nifty closes at 3800

* If Nifty closes at 4500

A : -81.55 and 18.45

B : -81.55 and 18.55

C : 0 and -81.55

D : -181.55 and 18.45

Answer: D

Question 4

Section B (2 Mark)

A bank plans to offer new subordinated notes in the open market next month but knows that its credit rating is being reviewed by a credit rating agency. The bank wants to avoid paying sharply higher credit costs. Which type of credit derivative contract would you most recommend for this situation?

A : Credit linked note

B : Credit option

C : Credit risk option

D : Total return swap

Answer: C

Question 5

Section A (1 Mark)

When deciding under uncertainty, which of the following generally accepted guidelines that a decision maker should follow:

A : III and IV

B : II and V

C : I and III

D : None of the Above

Answer: D

Name:	Chartered Wealth Manager (CWM) Certification Level II Examination
Exam Code:	CWM_LEVEL_2
Certification:	Chartered Wealth Manager
Vendor:	AAFM
Total Questions:	1265
Last Updated:	Jul 15, 2026

AAFM CWM_LEVEL_2 Answers