ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 131:

  Click on the Detail Button to view the Formula Sheet. Under which circumstances are banks allowed to park positions with a counterparty?:

  A. It is forbidden to park positions.
  B. In conditions of exceptional volatility.
  C. If the two counterparties agree.
  D. If approved by senior management.
  A. It is forbidden to park positions.

• Question 132:

  Click on the Detail Button to view the Formula Sheet. What is the Gold Offered Forward Rate?

  A. The price differential between spot and forward gold prices
  B. The rate at which dealers will lend gold against US dollars
  C. The implied forward price of gold
  D. The price of gold for forward delivery
  B. The rate at which dealers will lend gold against US dollars

• Question 133:

  Click on the Detail Button to view the Formula Sheet. Which of the following is not in the Model Code?

  A. Banks and brokers should record, by tapes or other such means, conversations between dealing counterparties.
  B. There is no need to inform new counterparties and clients that conversations will be recorded.
  C. On completion of recordings, tapes should be kept for a period sufficient to enable the details of any transaction contained therein to be confirmed.
  D. The storage of recorded tapes should be strictly managed to prevent their contents from being tampered with.
  B. There is no need to inform new counterparties and clients that conversations will be recorded.

• Question 134:

  Click on the Detail Button to view the Formula Sheet. What is the probability of an at-the-money option being exercised?

  A. Less than 50% probability
  B. 50% probability
  C. More than 50% probability
  D. Zero probability
  B. 50% probability

• Question 135:

  Click on the Detail Button to view the Formula Sheet. An option contract that gives the buyer the right to exercise the option at several distinct points during its life is called:

  A. European-style option
  B. American-style option
  C. Bermudan option
  D. Asian option
  C. Bermudan option

• Question 136:

  Click on the Detail Button to view the Formula Sheet. The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR10 million nominal of the 5.25% bund July 2012, which is worth EUR 11,260,000, with no initial margin. The Repurchase Price is:

  A. EUR 10,000,500.00
  B. EUR 10,000,486.11
  C. EUR 11,260,563.00
  D. EUR 11,260,547.36
  C. EUR 11,260,563.00

• Question 137:

  Click on the Detail Button to view the Formula Sheet. Which of the following are transferable instruments?

  A. Eurocertificate of deposit
  B. US Treasury bill
  C. CP
  D. All of the above
  D. All of the above

• Question 138:

  Click on the Detail Button to view the Formula Sheet. The theta 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
  C. The sensitivity of the option value to changes in the time to expiry

• Question 139:

  Click on the Detail Button to view the Formula Sheet. Which of the following is true?

  A. It is the responsibility of the broking firm to conduct due diligence before transacting a deal.
  B. All principals have the responsibility for assessing the creditworthiness of their counterparties or potential counterparties whether dealing direct or through a broking firm.
  C. The principal is obliged to take into account any information provided by a broker as they are bound by a professional relationship.
  D. All of the above.
  B. All principals have the responsibility for assessing the creditworthiness of their counterparties or potential counterparties whether dealing direct or through a broking firm.

• Question 140:

  Click on the Detail Button to view the Formula Sheet. 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:

  A. Agree in writing with the fund manager that the allocation will be confirmed as soon as practicable after the transaction is executed.
  B. Insist on the allocation being made and confirmed before the transaction is executed.
  C. Agree in writing with the fund manager that he will guarantee the transaction until the allocation is confirmed.
  D. Any of the above.
  A. Agree in writing with the fund manager that the allocation will be confirmed as soon as practicable after the transaction is executed.