CIRO Derivatives Exam case studies
CIRO Derivatives Exam · Put your knowledge to work in context.
The CIRO Derivatives Exam is a Canadian securities-industry proficiency examination for individuals who advise on or trade derivative instruments, including futures contracts, options and related strategies. It is generally written by candidates seeking registration in a derivatives capacity at an investment dealer, or by staff in compliance, operations and supervision roles that touch derivative products. The exam tests both product knowledge and conduct: the structure of derivative markets, futures mechanics, option pricing fundamentals, hedging and risk-management strategy, trade lifecycle including clearing and settlement, margin and collateral, the regulatory framework, and client suitability and disclosure obligations. Expect multiple-choice questions that blend calculation with judgment. The CIRO Derivatives Exam case studies are 5 cases and about 2,592 words.
1The Concentration Limit That Wasn't Checked
A retail client, Ms. Okafor, holds a portfolio of £180,000 in UK-listed equities.
569 words, about 3 min2Margin Call on a Spread That Moved the Wrong Way
A proprietary trading desk holds a short position in 200 front-month crude oil futures contracts at 78.50 per barrel, each contract for 1,000 barrels. Initial margin is 9,000 per contract and maintenance margin is 7,000 per contract.
456 words, about 2 min3Hedging a Floating-Rate Loan with the Wrong Instrument
A mid-sized manufacturer has a £25 million term loan priced at SONIA plus 250 basis points, resetting quarterly, with four years remaining. The treasury team expects rates to rise and wants to fix its interest cost.
540 words, about 3 min4Early Exercise of a Deep ITM Call Before a Dividend
An investor is long 50 call contracts on a stock trading at 96, struck at 60, expiring in 21 days. Each contract covers 100 shares.
515 words, about 3 min5The Introducing Broker That Didn't Segregate
A client trades through an introducing broker that routes orders to a futures commission merchant. The client deposits 500,000 with the introducing broker, which is permitted to hold customer funds under its agreement.
512 words, about 3 min