3I0-012 Exam Questions

Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:

Today is Monday, 8th December. You sell a 9x12 FRA for value Thursday, 10th September next year. On what date is the settlement amount due to be paid or received (assuming that the...

Click on the Exhibit Button to view the Formula Sheet. You are short of 6 Dec euro dollar futures contracts at 98.10. Yesterday, the closing price was 98.15. Today's closing price...

Which of the following is true?

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 pay...

The premium on an option contract is:

The delta of an at-the-money long call option is:

You bought USD 5,000,000 against EUR at 1.1037 and 3,000,000 at 1.1052. If the EUR/USD rate is now quoted 1.1015/17, and it you deal at that rate, what profitwould you make?

A disgruntled customer claims that he should not have to settle an FRA with you because it is really just a wager. What type of risk are you exposed to?

Which of the following is not true?

In spite of having agreed to a deal, dealers are not bound to the deal if it is subject to documentation. The Model Code:

Bank B's price is shown by a broker to Bank A and is dealt by Bank

The use of standard settlement instructions (SSI's) is strongly encouraged because:

Under which circumstances are banks allowed to park positions with a counterparty?:

In a dispute between the dealer and a broker, the Model Code recommends that this should be referred in the first instance to:

The term "under reference" refers to:

When a broker calls "off" at the very instant a dealer "hits" the broker's price:

If a dealer has interest on one side, and the other side is dealt away, the broker should:

Bank XYZ calls you for a quote in EUR/USD for EURO 20 million. If you decide to quote to Bank XYZ:

The use of mobile phones within the dealing room is not considered good practice except

The organisational structure of market participants should ensure a strict segregation between front and back office of:

The Chairman and members of the ACls Committee for Professionalism are ready to assist in resolving disputes through the ACIs Expert Determination Service in situations where:

Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit of the Model Code, it

Where repos or securities lending transactions are entered into, the Model Code recommends:

Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

You and a dealer at another bank have an informal bilateral reciprocal arrangement to quote each other two-way prices. During periods of high volatility, the other dealer refuses t...

Management policy on the use of mobile devices by trading sales and settlement staff should:

When dealing with a fund manager, who will allocate shares in a transaction to his unknown clients after the transaction has been executed with you, you should:

What is the risk of dealing through an agent with an unknown principal?

Which of the following currencies is quoted on an actual/360 basis?

When is interest conventionally due on a 3-year interbank eurodollar deposit?

From the following GBP deposit rates: 1M (31-day) GBP deposits 3.15% 2M (61-day) GBP deposits 3.25% 3M (91-day) GBP deposits 3.41% 4M (120-day) GBP deposits 3.56% 5M (152-day) GBP...

Which of the following are quoted in terms of a yield-to-maturity?

What is the buyers primary risk in a repo?

How can material divergences between the value of cash and collateral be managed in a documented sell/buy-back?

The two-week repo rate br the 5.25% bund 2007 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000 with no initial margin. You would earn repo interest...

What is the ISO code for the Lebanon pound?

A dealer needs to buy USD against SGD. Of the following rates quoted to him, which is the best rate for him?

You need to buy USD 5,000,000 against GBP and are quoted the following rates concurrently by two separate banks: 1.6045-50 and 1.6047-52. At which rate do you trade?

Cable is quoted at 1.6075-80 and you say "5 yours!" to the broker. What have you done?

You are quoted spot NZD/USD 0.6821-26 and USD/CHF 1.4652-56 at what price can you buy CHF against NZD?

You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/USD. What do you quote?

You are quoted the following market rates: spot EUR/CHF 1.1005 6M (180-day) EUR 3.45% 6M (180-day) CHF 1.25% What are the 6-month EUR/CHF forward points?

Using the following rates: spot GBP/CHF 2.3785-15 spot CHF/SEK 5.5975-85 3M GBP/SEK swap 725/690 What is the price for 3-month outright GBP/SEK?

The market is quoting: 1-month (31-day) USD. 1.75% 3-month (91-day) USD. 2.05% What is the 1x3 rate in USD?

A customer sells a LIFFE Euro Swiss futures contract. Which of the following risks could he be trying to hedge?

Purchasing a USD/JPY call option is equivalent to:

An option premium is a positive function of:

The delta of an option is:

What is the purpose of a long strangle option strategy?