100% Free PRMIA 8013 Practice Test Questions and Answers 2026

What is the duration of a 10 year zero coupon bond. Assume the bond is callable (ie, the issuer can buy it back) at face value at any time during its existence.

The gamma of a call option is 0.08. What is the gamma of the corresponding put option? 

An early exercise of an American call option is advisable whenever the option is deep in the money and delta approaches 1

For a forward contract on a commodity, an increase in carrying costs (all other factors remaining constant) has the effect of:

What is the standard deviation (in dollars) of a portfolio worth $10,000, of which $4,000 is invested in Stock A, with an expected return of 10% and standard deviation of 20%; and the rest in Stock B, with an expected return of 12% and a standard deviation of 25%. The correlation between the two stocks is 0.6.