ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 161:

  Click on the Detail Button to view the Formula Sheet. A 6-month SEK/NOK Swap is quoted 140/150. Spot is 0.9445. Which of the following statements is correct?

  A. SEK interest rates are higher than NOK interest rates
  B. NOK interest rates are higher than SEK interest rates
  C. NOK interest rates are higher than USD interest rates
  D. SEK interest rates and NOK interest rates are converging
  B. NOK interest rates are higher than SEK interest rates

• Question 162:

  Click on the Detail Button to view the Formula Sheet. Purchasing a USD/JPY call option is equivalent to:

  A. Selling an JPY/USD put option
  B. Selling a JPY/USD call option
  C. Purchasing an JPY/USD put option
  D. None of the above
  C. Purchasing an JPY/USD put option

• Question 163:

  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
  D. Operational risk

• Question 164:

  Click on the Detail Button to view the Formula Sheet. What is an outright forward FX transaction?

  A. A spot sale (purchase) and a forward purchase (sale)
  B. A spot sale (purchase) and a forward sale (purchase)
  C. An exchange of currencies on a date beyond spot and at a price fixed today
  D. An exchange of currencies on a date beyond spot
  C. An exchange of currencies on a date beyond spot and at a price fixed today

• Question 165:

  Click on the Detail Button to view the Formula Sheet. What is the maximum maturity of a London CD?

  A. One year
  B. 270 days
  C. 183 days
  D. 5 years
  D. 5 years

• Question 166:

  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
  B. A long put option + short call option at the same strike price

• Question 167:

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

  A. EUR 5,798,982
  B. EUR 5,799,497
  C. EUR 5,746,376
  D. EUR 5,000,694
  A. EUR 5,798,982

• Question 168:

  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
  D. All of the above

• Question 169:

  Click on the Detail Button to view the Formula Sheet. 3-month EUR/USD FX swaps are quoted to you at 15/19. If the "points are in your favour", what have you done?

  A. Bought and sold 3-month EUR/USD through the swap
  B. Sold and bought 3-month EUR/USD through the swap
  C. Made the quote
  D. Cannot say
  A. Bought and sold 3-month EUR/USD through the swap

• Question 170:

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

  A. Always decline gifts.
  B. Give the gift to charity.
  C. Keep the gift.
  D. Report the gift to management.
  D. Report the gift to management.