Click on the Detail Button to view the Formula Sheet. 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, for deals involving foreign counterparties, in faster moving markets such as FX and when dealing in other instruments which have very short settlement periods. This checking should:
A. Be carried out at least three times a day.
B. Be agreed between the parties.
C. Be done at the end of each day.
D. Be decided by the broker.
Click on the Detail Button to view the Formula Sheet. If you buy GBP 2,000,000 against USD at 1.6020; GBP 1,000,000 at 1.6035 and GBP 3,000,000 at 1.6028, what is the average rate of your position?
A. 1.6035
B. 1.6027
C. 1.6030
D. 1.6023
Click on the Detail Button to view the Formula Sheet. Fraud is typically classified as:
A. Credit risk
B. Market risk
C. Legal risk
D. Operational risk
Click on the Detail Button to view the Formula Sheet. What is replacement cost a function of?
A. Credit risk
B. Market risk
C. Both of the above
D. None of the above
Click on the Detail Button to view the Formula Sheet. What is a master agreement intended to do?
A. Describe the parameters of a dealing relationship
B. Set out the rights and obligations of two parties
C. Apply to all transactions between two parties
D. All of the above
Click on the Detail Button to view the Formula Sheet. What is the purpose of a long strangle option strategy?
A. To anticipate very low volatility in the price of the underlying commodity
B. To anticipate moderately high volatility in the price of the underlying commodity
C. To anticipate moderate volatility in the price of the underlying commodity
D. To anticipate very high volatility in the price of the underlying commodity
Click on the Detail Button to view the Formula Sheet. How can options be used to synthesise a short position in the underlying commodity?
A. A short put option + long call option at the same strike price
B. A long put option + short call option at the same strike price
C. A short put option + short call option at the same strike price
D. A long put option + long call option at the same strike price
Click on the Detail Button to view the Formula Sheet. An option premium is a positive function of:
A. Time to expiry
B. The volatility of the price of the underlying commodity
C. The moneyness of the option
D. All of the above
Click on the Detail Button to view the Formula Sheet. The delta of an option is:
A. The sensitivity of the option value to changes in interest rates
B. The sensitivity of the option value to changes in volatility
C. The sensitivity of the option value to changes in the time to expiry
D. The sensitivity of the option value to changes in the price of the underlying
Click on the Detail Button to view the Formula Sheet. 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. 6month LIBOR for the next payment date is fixed today at 4.95%. How would you hedge the swap using FRAs? How to hedge an IRS with a strip of FRAs?
A. buy a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
B. sell a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
C. buy a strip of 6x12, 12x18 and 18x24 FRAs
D. sell a strip of 6x12, 12x18 and 18x24 FRAs
Nowadays, the certification exams become more and more important and required by more and more enterprises when applying for a job. But how to prepare for the exam effectively? How to prepare for the exam in a short time with less efforts? How to get a ideal result and how to find the most reliable resources? Here on Vcedump.com, you will find all the answers. Vcedump.com provide not only ACI exam questions, answers and explanations but also complete assistance on your exam preparation and certification application. If you are confused on your 3I0-008 exam preparations and ACI certification application, do not hesitate to visit our Vcedump.com to find your solutions here.