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3I0-012 · Question #597

You have quoted your customer the following eurodollar deposit rates: 1M 5.375-25% 2M 5.4375-3125% 3M 5.5-375% The customer says, "I give you USD 20 million in the two's". What have you done?

The correct answer is A. Borrowed USD 20 million at 5.3125%. See the full explanation below for the reasoning.

Question

You have quoted your customer the following eurodollar deposit rates:

1M 5.375-25% 2M 5.4375-3125% 3M 5.5-375% The customer says, "I give you USD 20 million in the two's". What have you done?

Options

  • ABorrowed USD 20 million at 5.3125%
  • BLent USD 20 million at 5.4375%
  • CBorrowed USD 20 million at 5.4375%
  • DLent USD 20 million at 5.3125%

How the community answered

(17 responses)
  • A
    82% (14)
  • C
    6% (1)
  • D
    12% (2)

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