SOFE Exam AFE Topic 2 Question 87 Discussion

Actual exam question for SOFE's AFE exam

Question #: 87
Topic #: 2

In what, securities involve in repos are not delivered on the settlement date of the agreement and the contract may be extended upon mutual agreement of the buyer-lender and seller-borrower.

AFinancial servicing

BPrice-cap

CRollover

DPurchasing agreements

Show Suggested Answer

Suggested Answer: C

by Stefanie at Sep 18, 2024, 04:13 AM

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Floyd

2 months ago

I'm not sure, but I think it might be D) Purchasing agreements. Can someone explain why it's not that option?

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Delbert

2 months ago

Hmm, this is a tough one. I'll have to go with C. Rollover, but I'm not 100% sure. Hopefully, I don't end up in a 'repo-man' situation if I get it wrong!

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Ashlee

2 months ago

This is a tricky one, but I'm going with C. Rollover. The extension of the contract upon mutual agreement is a key characteristic of a rollover.

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Jesusita

2 months ago

D. Purchasing agreements seems more logical to me. The question talks about the securities not being delivered, which suggests a purchase agreement rather than a rollover.

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Sharen

2 months ago

I think the answer is C. Rollover. The question mentions the securities are not delivered on the settlement date, and the contract can be extended, which sounds like a rollover agreement.

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