Capital Markets Programme & Investment Operations Certificate - Derivatives (Level 3) - Version 25 - Exam sample paper

Sep 26, 2026

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Exam sample paper for the Capital Markets Programme & Investment Operations Certificate, focused on Derivatives at Level 3. The document specifies the test structure and timing (2 hours), scoring guidance (70–100 pass, 0–69 fail), and instructions for answering multiple-choice questions by circling responses and checking an answer sheet. It includes question prompts covering key derivatives concepts such as FX settlement, order vs quote driven markets, option types, contract for difference characteristics, risk types, and related market terminology.

LanguageEnglish

CategoryExam

FormatPDF

Pages39

Reading Time1 h 38 min

AccessFree to download

How to use this sample paper

Questions

LEVEL 3 CAPITAL MARKETS PROGRAMME & INVESTMENT OPERATIONS CERTIFICATE DERIVATIVES (LEVEL 3) VERSION 25 TIME ALLOWED: 2 HOURS No copying of any part of this paper is permitted without the prior written authority of the Chartered Institute for Securities & Investment © Chartered Institute for Securities & Investment How to use this sample paper These 100 questions should be answered in two hours in the real exam, so make sure you time yourself accurately. Record your answer for each question by circling your selected answer. When you have finished the test, you may check your answers against the Answer Sheet at the back of this paper. The exam is scored as follows: 70-100 Pass 0-69 Fail For those questions you answered incorrectly, the answer sheet will show you the corresponding syllabus element, sub element and learning objective against which the questions were written, so you can identify any syllabus areas where you may need to revise further. 1 A GBP/EUR trade in the spot FX market which is transacted on a Monday will, in a normal working week, usually be settled on which day? A Tuesday B Wednesday C Thursday D Friday 2 Which of the following describes a market in which only the bid and ask offers of designated market makers, dealers or specialists are displayed? A Order driven B Quote driven C Price driven D Amount driven 3 An investor is taking out a Flex option on the FTSE100 index on ICE Futures Europe and would like to customise both the exercise price and the expiry date. Which of these two requirements are possible (if either)? A Only the exercise price B Only the expiry date C Both D Neither 4 An investor buys calls on a stock. What is his maximum potential loss? A Unlimited B The premium C The strike price D The strike price less the premium 5 Which of the following is a characteristic of a Contract for Difference? A The invoicing amount at delivery is based on the price differential between two related commodities B The intermonth spreads are margined differently from an outright position C The futures seller has an option to deliver a different quality of commodity and invoicing is achieved via conversion factors D The open positions at expiry do not go to delivery but are simply marked to market 6 Which of the following best describes a call option? A The right, but not the obligation, to buy an asset at a given price on or before a given date B The right, but not the obligation, to sell an asset at a given price on or before a given date C A traded option contract that can be bought or sold in the market at any time during its life D The obligation to buy an asset at a given price on or before a given date 7 Despite having sufficient funds, a derivatives trader is finding it difficult to buy a particular contract in order to close out an open position. This problem is an example of the realisation of what type of risk? A Credit risk B Settlement risk C Systemic risk D Liquidity risk 8 Gearing allows speculators in the futures market to: A avoid physical delivery of the underlying asset B reduce their counterparty exposure C buy the underlying cheaper in the OTC market D pay only a fraction of a contract's value upfront 9 Twenty points have been quoted for a particular forward FX trade. This represents the difference between: A The spot price and the forward outright rate B The spread for the spot bid and offer prices C The relative premium of forward delivery vs any discount D The base currency's forward price and that of the traded currency 10 Which of the following is TRUE of ordinary share voting rights? A Shareholders may not delegate their voting rights at company annual general meetings B Shareholders voting by proxy may also vote in person at extraordinary general meetings C The number of votes is in direct proportion to the number of shareholders voting D Voting shareholders

FAQs

How long is the exam and how should answers be recorded?

The sample indicates two hours for 100 questions. Record each answer by circling the selected option for every question.

What scoring rule is used for pass/fail?

Pass requires a score between 70 and 100, while 0 to 69 is scored as fail.

What happens if a question is answered incorrectly?

The answer sheet will show the corresponding syllabus element, sub element, and learning objective, helping identify which syllabus areas need further revision.

Sep 26, 2026

Uploaded by Melati