AFP CTP Practice Exams
Last updated on Oct 22,2026- Exam Code: CTP
- Exam Name: Certified Treasury Professional
- Certification Provider: AFP
- Latest update: Oct 22,2026
A put option on a company’s stock has an exercise price of $20. On the delivery date, the stock is trading at $24 per share.
What should the investor who has paid $2 for the option do?
- A . Not exercise the option and lose $2.
- B . Not exercise the option and lose $6.
- C . Exercise the option and gain $2.
- D . Exercise the option and gain $4.
An art history museum has recently finished renovating its new location. Before the move, the treasurer considers purchasing additional insurance to protect the art during transit.
What form of additional insurance should the treasurer choose?
- A . Special multi-peril (SMP)
- B . Business interruption
- C . General liability
- D . Difference in conditions (DIC)
Which of the following is a ratio that is often used by commercial banks to measure a company’s leverage and does not include the effect of assets that are difficult to value or are NOT easily converted to cash?
- A . Long-term debt to capital
- B . Debt to tangible net worth
- C . Total liabilities to total assets
- D . Cash flow to total debt
Due to a loss of proprietary information held for clients, ABC Company has been named in a billion dollar lawsuit. It was determined that the loss of information was due to a breach in its computer system firewalls by outside parties. When the lawsuit became public, the company experienced a steep drop in its stock price.
This scenario is an example of what kind of risk?
- A . Internal technology
- B . Compliance
- C . External theft/fraud
- D . Market
Which of the following is a tool that companies use to obtain a quantitative rating of a financial institution’s level of service?
- A . Relationship review
- B . Score card
- C . Service agreement
- D . CAMELS rating
The treasurer of a corporation is negotiating with one of his/her suppliers to allow the corporation to have 30 days to pay the supplier’s invoices.
The treasurer is arranging:
- A . short-term financing.
- B . revolving credit agreement.
- C . factoring of receivables.
- D . uncommitted line of credit.
If the Federal Reserve Board increased the discount rate, you would expect:
- A . long-term bonds to increase more in price than short-term bonds.
- B . short-term bonds to decrease more in price than long-term bonds.
- C . long-term bonds to decrease more in price than short-term bonds.
- D . that there would be no effect on either long- or short-term bond prices.
A U.S. corporation has annual revenues of $500 million and a corporate tax rate of 15%. It has subsidiaries in Country A and Country B. Subsidiary A has annual revenues of $50 million. Subsidiary B has annual revenues of $20 million. The parent company has asked the Subsidiary A to transfer the equivalent of $10 million to Subsidiary B. There is a 5% withholding tax in Country A and a 3% withholding tax in Country B.
How much withholding tax will the company owe as a result of this transaction?
- A . $200,000
- B . $300,000
- C . $500,000
- D . $800,000
What is the premium (price) for an oil contract, if the following conditions are present?
LIBOR rate of 5%
Out of the money cost of $3
Strike price is $4
In the money price of $1
Speculative premium of $2
- A . $3
- B . $5.25
- C . $7
- D . $7.35
A treasury manager at a multinational manufacturing corporation assigned a team of analysts to re-engineer the company’s FX exposure management program.
Which of the following alternatives would BEST accomplish this objective?
- A . Leading and lagging
- B . Re-invoicing
- C . Transfer pricing
- D . Value dating