Free Practice Questions for SET P3 Derivatives

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Sample SET P3 Derivatives Practice Questions

Try these sample questions to review concepts for the SET P3 Derivatives exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 50+ question experience with AI tutoring.

1Which feature most clearly distinguishes a typical bilateral forward from an exchange-traded futures contract?

A.Its quantity and maturity can be negotiated privately.

B.Its terms must match the exchange's standardized contract.

C.Its gains and losses must be settled daily through a central counterparty.

D.It can be closed only through an exchange order book.

Explanation: A bilateral forward permits customized terms between counterparties. Futures use standardized exchange contracts and central clearing.

2What does a central counterparty accomplish by becoming the buyer to each seller and seller to each buyer?

A.It transfers all market losses to the exchange.

B.It replaces bilateral exposures with centrally managed clearing exposures.

C.It fixes futures prices at their theoretical values.

D.It removes the need to post collateral.

Explanation: Central clearing replaces the original bilateral obligations with obligations to the clearinghouse. Margin and default-management arrangements reduce counterparty risk but do not eliminate every credit or systemic risk.

3Which position creates a binding forward commitment rather than an option holder's right?

A.Buying a call option.

B.Buying a put option.

C.Entering a long forward contract.

D.Buying a subscription warrant.

Explanation: A long forward creates an obligation to settle on the agreed terms. An option or warrant holder generally chooses whether to exercise the contractual right.

4A futures position requires margin equal to a small fraction of its notional exposure. What does this imply?

A.The notional exposure equals the maximum loss.

B.Margin is the price paid to purchase the underlying asset.

C.Losses stop automatically when the initial deposit is exhausted.

D.Percentage gains and losses relative to deposited capital can be magnified.

Explanation: Margin supports a larger economic exposure, creating leverage. Adverse futures movements can require additional funds and can cause losses beyond the initial margin.

5A non-dividend-paying stock costs THB 500. With a 4% annual simple financing rate and one year to delivery, what is its theoretical forward price, ignoring costs and restrictions?

A.THB 480

B.THB 500

C.THB 520

D.THB 540

Explanation: For the stated simple-interest assumptions, F = S(1 + rT). Thus 500 × 1.04 = THB 520.

6A forward trades above its no-arbitrage cost-of-carry value. Assuming unrestricted borrowing, spot trading and settlement, which strategy exploits the overpricing?

A.Borrow, buy the underlying, and sell the forward.

B.Short the underlying, invest the proceeds, and buy the forward.

C.Borrow and buy both the underlying and the forward.

D.Sell the underlying and sell the forward.

Explanation: Cash-and-carry arbitrage purchases the underlying with borrowed funds and locks in a higher sale price through the forward. Under the stated assumptions, the sale proceeds exceed the financed carrying cost.

7Holding spot prices and financing rates constant, how does a higher expected dividend yield affect theoretical equity-index futures prices?

A.It raises them because dividends are an additional financing charge.

B.It lowers them because holding the physical basket provides dividend income.

C.It leaves them unchanged because the contract is cash settled.

D.It leaves them unchanged until the dividend is actually paid.

Explanation: Dividend income is a benefit of holding the underlying basket. In F = S exp((r − q)T), increasing q reduces the futures price, all else equal.

8A manufacturer uses futures to reduce uncertainty about the price of raw materials it must buy. What role is it performing?

A.Market maker

B.Directional speculator

C.Hedger

D.Cash-and-carry arbitrageur

Explanation: The manufacturer already has a commercial price exposure. Its derivative position offsets that exposure rather than creating a stand-alone speculative bet.

9An index has a continuous dividend yield of 2% and a continuous financing rate of 5%. What annual net carry rate enters the standard equity-index forward model?

A.7%

B.2.5%

C.−3%

D.3%

Explanation: The net carry rate is r − q. Here it is 5% − 2% = 3% annually; time to maturity is applied separately in the exponent.

10Which event is primarily an operational risk in derivatives trading?

A.A gateway fault duplicates a client's order.

B.The underlying index falls after an earnings announcement.

C.A bilateral forward counterparty defaults.

D.A wider bid-ask spread makes liquidation expensive.

Explanation: Operational risk arises from failures in people, processes or systems. A duplicated order caused by a gateway fault is a technology and process failure.

About the SET P3 Derivatives Exam

Independent practice by OpenExamPrep for SET P3 — Complex Products: Derivatives. This is an English-language MCQ study adaptation, not an official translation or simulation of the official examination. Thai and English P3 routes are published. P3 is a component within IC Complex Type 3 or Type 1 approval; passing it alone does not grant a TFEX-issued licence or SEC approval.

Exam sponsor: SET examination framework through approved ATI/AIMC testing centers; SEC approval is separate. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

50 four-option MCQs in 80 minutes, with 12/20/8/5/5 items across overview, futures, options, TFEX mechanisms and contract specifications. Passing requires 70%. No separate oral, practical, assignment or case-study component is listed for P3 itself.

Time Limit

80 minutes

Passing Score

70% (35/50)

Exam / Certification Fees

THB 950 (Thai); THB 2,000 (English)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

SET Thai P3 assessment information · Source checked 2026-10-19Active paper, Thai fee, count, timing and test-center links.
SET English examination structure · Source checked 2026-10-19English P3 fee, structure and current version notices.
SET P3 learning outcomes and examination handbook · Source checked 2026-10-19Five-cluster item allocation and 70% pass mark; the hosted handbook is an older version, read with the current structure page.
SET updated P3 reading material · Source checked 2026-10-19Trading and product knowledge; live TFEX specifications take precedence for changed contract terms.
SEC IC Complex qualification tables · Source checked 2026-10-19SEC-hosted English translation of approval routes and exemptions.
TFEX SET50 futures specifications · Source checked 2026-10-19Current multiplier, listed months, price limits and final settlement calculation.
TFEX SET50 options specifications · Source checked 2026-10-19European exercise and cash settlement.
TFEX Single Stock Futures specifications · Source checked 2026-10-19Final-window volume-weighted settlement, rather than closing price alone.
TFEX Gold Futures specifications · Source checked 2026-10-19Baht-weight contracts and cash settlement.
TFEX USD/THB Futures specifications · Source checked 2026-10-19USD 1,000 size and THB 0.01 quotation increment.
TFEX margin explanation · Source checked 2026-10-19Initial margin, maintenance calls and force close.
TFEX cost-of-carry calculator · Source checked 2026-10-19Futures valuation study reference.
SEC-hosted put-call-futures parity research · Source checked 2026-10-19Replicating-payoff and parity content reference, not current contract logistics.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

24%

Overview of Derivatives

12 official items and 12 independent practice items.

40%

Fundamental Knowledge of Futures

20 official items and 20 independent practice items.

16%

Basic Knowledge of Option

8 official items and 8 independent practice items.

10%

TFEX Trading Mechanisms

5 official items and 5 independent practice items.

10%

TFEX Contract Specifications

5 official items and 5 independent practice items; use current TFEX product terms.

Preparing for the SET P3 Derivatives Exam

What You Need to Know

Passing score: 70% (35/50)
Assessment: 50 four-option MCQs in 80 minutes, with 12/20/8/5/5 items across overview, futures, options, TFEX mechanisms and contract specifications. Passing requires 70%. No separate oral, practical, assignment or case-study component is listed for P3 itself.
Time limit: 80 minutes
Exam / certification fees: THB 950 (Thai); THB 2,000 (English) Official sources

Using Our Practice Resources

Work through all 50 available questions
Review every answer and explanation
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SET P3 Derivatives: Suggested Study Strategy

1Work through both long and short payoffs, including fees where specified.

2Read each contract's current TFEX specification before relying on historical textbook values.

3Separate margin collateral from notional exposure and from the maximum possible loss.

Frequently Asked Questions

Which languages does SET publish for P3?

SET publishes Thai and English examination routes. The Thai page lists THB 950 and the English structure page lists THB 2,000. This practice resource is independent English study material, not an official translation.

Does P3 alone grant approval?

No. The SEC applies qualification and knowledge requirements separately. Standard Type 3 preparation combines P1 and P3; Type 1 also includes P2, with alternative professional and other routes governed by the SEC tables.

Is this an official exam simulation?

No. These are original English-language MCQ study questions by OpenExamPrep. They support learning the named topics without reproducing an official paper or guaranteeing exam performance.