3I0-012 Exam Questions

If you buy GBP 2,000,000 against USD at 1.6020; GSP 1,000,000 at 1.6035 and GBP 3,000,000 at 1.6028, what is the average rate of your position?

What is replacement cost a function of?

What is a master agreement intended to do?

The Model Code recommends that when banks accept a stop-loss order

The Committee for Professionalism strongly recommends intra-day oral deal checks to help reduce the number and size of differences, particularly when dealing through voice-brokers,...

How long does the Model Code recommend that tape recordings of dealers/brokers should be kept?

Dealers should not conduct dealing activities outside the bank unless:

Banks have a fiduciary responsibility to ensure that clients have all necessary information to understand the transaction because this:

When is a broker allowed to assume a deal is closed:

Which of the following is not in the Model Code?

Click on the Exhibit Button to view the Formula Sheet, If the value date of forward USD/JPY transactions is declared a holiday in either New York or Tokyo, the correct value date w...

Bank participants have a duty to make it clear that their prices are firm or merely indicative:

The extension of forward FX contracts at their historic rates is only allowed when:

You have received a gift from a good friend who also happens to be your USD/YEN broker. Under such circumstances, the Model Code recommends that you should:

Brokers should confirm all transactions:

Making interest rate swap transactions subject to agreement on documentation:

Where dealing through an intermediary with an unidentified principal, the Model Code recommends:

You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced...

You hear from several counterparties that a major market participant has taken major losses on long USD/JPY positions. You know the reports are untrue, as you have in fact bought l...

Which of the following would not constitute an event of market isruption under the Model Code?

One of your brokers asks you to buy and sell EUR/USD at the same price net of brokerage in order to allow him to clear a transaction.

You have written a EUR/USD knock-in option for a bank counterparty. At 6pm New York time on Friday, the instrike point is breached. This is confirmed on screens. The counterparty c...

When dealing with customers, financial market professionals are advised by the Model Code to clarify that all transactions are entered into solely at each partys risk by explicitly...

The Model Code strongly recommends that intra-day oral deal checks should:

A 3-month (90-day) USD deposit is 5.5625% and 6-month (180-day) USD deposit is 5.75%. What is the 3x6 USD deposit rate?

A 7-day piece of USCP is quoted at a rate of discount of 1.75%. What is its true yield?

A 1-month (30-day) USCP with a race value of USD 5 million is quoted at a rate of discount of 2.31%. How much is the paper worth?

Which of the following is issued by auction?

What type of institution is the typical issuer of bank bills?

A CD with a face value of USD 50 million and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capit...

The spot/next repo rate for the 5% bund 2006 is quoted to you at 1.75-80%. You sell bonds with a market value of EUR 5,798,692 through a sell/buy-back. The Repurchase Price is:

What is the ISO code for the currency of Hungary?

3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF ra...

If a 6-month AUD/NZD swap is quoted 173/165, which of the following statements would you consider to be correct?

What is the value date of a 6-month outright forward FX transaction dealt today, if todays spot date is Monday, 30th June? Assume there are no bank holidays.

If you sell USD 3-month forward to a client against EUR, what should you do to hedge your position?

A customer asks for a price in 3-month CHF/JPY. You quote 56/54. The customer deals at 54. What have you done?

You are quoted the following market rates: spot EUR/USD. 1.2250 3M (91-day) EUR 2.55% 3M (91-day) USD. 2.00% What is 3-month EUR/USD?

You are quoted the following market rates: spot EUR/GBP 0.6670 6M (182-day) EUR 2.35% 6M (182-day) GBP 375% What is 6-month EUR/GBP?

You are quoted the following market rates: spot GBP/USD. 1.6530 9M (272-day) GBP. 3.60% 9M (272-day) USD. 1.95% What are the 9-month GBP/USD forward points?

You bought a EUR 8,000,000 6x9 FRA at 4.50%. The settlement rate is 3-month (90-day) EURIBOR, which is fixed at 3.50%. What is the settlement amount at maturity?

Which of the following is true?

An interest rate swap is:

How are Overnight Indexed Swaps settled?

An at-the-money call option:

What is a long straddle option strategy?

Click on the Exhibit Button to view the Formula Sheet. If you bought USD 2,000,000 against CHF at 1.1020, USD 3,000,000 at 1.1040 and USD 5,000,000 at 1.1032, what is the average r...

You have done the following deals in spot USD/JPY: Sold USD 5.0 million at 111.60 Bought USD 3.5 million at 111.20 Bought USD 2.0 million at 111.50 Sold USD 2.0 million at 111.55 W...

Half an hour ago you were made a price in USD/CAD of 1.5250-55 and sold USD 10 million. The price is now 1.5232-37 and you square your position. What is your profit or loss?

At the end of the day you are short EUR 10 million against GBP at 0.6712. You are asked to revalue your position at a EUR/GBP rate of 0.6729. What is the resulting profit or loss?