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SOFE Exam AFE Topic 1 Question 88 Discussion

Actual exam question for SOFE's AFE exam
Question #: 88
Topic #: 1
[All AFE Questions]

Dollar rolls differ from regular repurchase agreements due to which of the following characteristics in the securities sold and repurchased.

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Suggested Answer: D

Contribute your Thoughts:

Alpha
1 months ago
Ah, the age-old question of dollar rolls vs. regular repos. I've heard they're as different as a dollar bill and a roll of quarters. Gotta love these finance questions!
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Yvette
9 days ago
C) they generally have different principal amounts
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Junita
10 days ago
B) they are collateralized by different but similar mortgage pools
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Desmond
27 days ago
A) they are represented by different certificates
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Almeta
1 months ago
D for sure! It's like a package deal, you know? The whole shebang is different in dollar rolls compared to regular repos.
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Joaquin
1 months ago
Hmm, I'm not sure about this one. Maybe C? I heard something about the principal amounts being different, but I could be wrong.
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Dorothy
9 days ago
Yes, dollar rolls are collateralized by similar mortgage pools but can have different principal amounts
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Octavio
10 days ago
That makes sense, so the correct answer is C) they generally have different principal amounts
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Ahmad
1 months ago
I agree, the securities sold and repurchased in dollar rolls can have different principal amounts
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Sabra
1 months ago
I think it's D) All of the above
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Alaine
2 months ago
I think the answer is D. Dollar rolls are different from regular repos in multiple ways, including the certificates, collateral, and principal amounts.
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Tyra
1 months ago
That's correct, they generally have different principal amounts as well.
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Dominque
1 months ago
Yes, they are represented by different certificates and collateralized by similar mortgage pools.
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Freeman
1 months ago
I agree, dollar rolls have unique characteristics compared to regular repos.
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Arleen
2 months ago
I'm not sure, but I think it could also be D) All of the above because they can have different characteristics.
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Kate
2 months ago
I agree with Tien, dollar rolls do involve different principal amounts.
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Tien
2 months ago
I think the answer is C) they generally have different principal amounts.
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