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3I0-012 · Question #440

3I0-012 Question #440: Real Exam Question with Answer & Explanation

The correct answer is A. 12-month AUD rates are higher than 12-month NZD rates. See the full explanation below for the reasoning.

Question

If a 12-month AUD/NZD swap is quoted 53/47, which of the following statements would you consider to be correct?

Options

  • A12-month AUD rates are higher than 12-month NZD rates
  • B12-month AUD rates are lower than 12-month NZD rates
  • CSpot AUD/NZD will be higher by approximately 50 points in 12 months
  • DThe AUD yield curve is positive, whilst the NZD curve is negative

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