3I0-012 Exam Questions

You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10 million interest rate swap with exactly two years to maturity . 6-month LIBOR for the next pa...

The intrinsic value of a long call option:

What is the probability of an at-the-money option being exercised?

A dealer does the following deals in EUR/USD: buys EUR 1 m at 11020 sells EUR 3 m at 1.1022 buys EUR 2 m at 1.1002 buys EUR 1.5 m at 1.1012 What position does the dealer now have?

Fraud is typically classified as:

What is the effect of netting?

What is a Vostro account?

For which of the following reasons is the extension of forward contracts at non-current rates is discouraged:

Confirmations must be sent out

Where the matter of dealing for personal account is concerned, the Model Code recommends that

To curb attempted fraud, banks should:

Written confirmation is a function that can be done by:

Which of following is not true?

Which of the following statements is true?

Click on the Exhibit Button to view the Formula Sheet. Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO /USD 1.1592/97. B...

When you are accepting a stop loss order, you must:

Brokers shall not reveal the identity of a counterparty unless:

Which of the following statements reflects the Model Code on gambling or betting amongst market participants?

Where answer phone equipment is used for reporting and recording of off-premises transactions, it should be:

Gambling or betting amongst market participants has obvious dangers and:

Confirmations should be sent out by both counterparties through an efficient and secure means of communication, preferably electronic:

Payment and settlement instructions should be passed:

The Model Code rules that deals at non-current rates:

You quote a price to a broker on EUR 100 million. Your price is hit for EUR 50 million. What does the Model Code say about this situation?

You are quoting forward FX prices to a broker subject to finding a counterparly for a matching transaction. The Model Code says:

Deliberately inputting incorrect big figures into an electronic dealing platform is:

You deal over the phone with a counterparty. The subsequent confirmation differs from the terms agreed verbally. What is the result?

A broker offers a dealer an incentive in the form of a reduction to the agreed schedule of brokerage between the firms.

It is now permissible in most markets for brokers to be owned by banks and other principals. Where there is shared management, or a share holding or other investment in a broker by...

If a dealer has any intention of assigning an interest rate swap to a third party soon after transacting that swap:

A dealer has indicated his intention of assigning an interest rate swap to a third party soon after transacting that swap. When about to execute an assignment

What does the Model Code say about netting?

The Model Code recommends that, in the case or complaints about transactions, management should:

If a broker refers to "the payer of 5-year euro at 4.12", what is this party doing?

What is meant by "short dates"?

In all dealing conversations, the Model Code strongly recommends:

A 3-month (91-day) deposit of EUR25 million is made at 3.25%. At maturity, it is rolled over three times at 3.55% for 90 days, 4.15% for 91 days and 4.19% for 89 days. At the end o...

Click on the Exhibit Button to view the Formula Sheet. A 6-month (182-day) investment of CHF15.5 million yields a return of CHF100,000. What is the rate of return?

Using the following rates: 3M (90-day) eurodeposits3.50% 6M (180-day) eurodeposits3.75% What is the rate for a deposit, which runs from 3 to 6 months?

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 hav...

You buy a 181-day 2.75% CD with a face value of USD 1,500,000 at par when it is issued. You sell it in the secondary market after 150 days at 2.60%. What is your holding period yie...

When quoting the exchange rate between the EUR and AUDI which is conventionally the base currency?

Are the forward points materially affected by changes in the spot rate?

A 6-month SEK/NOK Swap is quoted 140/150. Spot is 0.9445. Which of the following statements is correct?

How is an outright forward FX transaction quoted?

Spot cable is quoted at 1.6048-53 in the brokers and you quote a customer 1.6050-55 in USD 3 million, If they sell USD to you, how much GSP will you be short of?

If spot AUD/USD is quoted to you as 0.7406-09. How many AUD would you receive in exchange for USD 5,000,000 if you dealt on the price?

If GSP/USD is quoted to you at 1.61 20-30, how much GSP would you receive if you sold USD 2000,000?

If EUR/USD is 1.1025-28 and the 6-month swap is 112.50/113, what is the 6-month outright price?

You quote the following rates to a customer spot GBP/CHF 2.2005-10 3M GBP/CHF swap 120/115 At what rate do you sell GBP to a customer 3-month outright?