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3I0-012 · Question #333

A customer gives you GBP 25,000,000.00 at 0.625% same day for 7 days. Through a broker, you place the funds with a bank for the same period at 0.6875%. Brokerage is charged at 2 basis points per…

The correct answer is B. Profit of GBP 203.77. See the full explanation below for the reasoning.

Question

A customer gives you GBP 25,000,000.00 at 0.625% same day for 7 days. Through a broker, you place the funds with a bank for the same period at 0.6875%. Brokerage is charged at 2 basis points per annum. What is the net profit or loss on the deal?

Options

  • AProfitofGBP 299.66
  • BProfit of GBP 203.77
  • CLossofGBP299.66
  • DLoss ofGBP 203.77

How the community answered

(31 responses)
  • A
    3% (1)
  • B
    77% (24)
  • C
    6% (2)
  • D
    13% (4)

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