ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 11:

  Click on the Detail Button to view the Formula Sheet. Gambling or betting amongst market participants has obvious dangers and:

  A. Should be forbidden.
  B. Should be strongly discouraged.
  C. Should be monitored by management.
  D. All of the above.
  B. Should be strongly discouraged.

• Question 12:

  Click on the Detail Button to view the Formula Sheet. The premium on an option contract is:

  A. The price of the underlying commodity at the time of the transaction
  B. The price at which the transaction on the underlying commodity will be carried out if and when the option is exercised
  C. The price the buyer of the option pays to the seller when entering into the options contract
  D. The price at which the two counterparties can close-out their position
  C. The price the buyer of the option pays to the seller when entering into the options contract

• Question 13:

  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 14:

  Click on the Detail Button to view the Formula Sheet. What is the purpose of an initial margin on a futures exchange?

  A. To cover losses incurred between variation margin payments
  B. To exclude retail investors
  C. To pay reserve requirements
  D. To cover fees due to the clearing house
  A. To cover losses incurred between variation margin payments

• Question 15:

  Click on the Detail Button to view the Formula Sheet. If 6-month EUR/AUD is quoted at 29/32, which of the following statements is correct?

  A. EUR rates are higher than AUD rates in the 6-month
  B. AUD rates are higher than EUR rates in the 6-month
  C. There is a positive EUR yield curve
  D. There is not enough information to decide
  B. AUD rates are higher than EUR rates in the 6-month

• Question 16:

  Click on the Detail Button to view the Formula Sheet. Brokers shall not reveal the identity of a counterparty unless:

  A. They are forced to do so.
  B. Explicitly authorised to do so by the counterparty.
  C. They know the counterparty very well.
  D. They are asked by their senior management to do so.
  B. Explicitly authorised to do so by the counterparty.

• Question 17:

  Click on the Detail Button to view the Formula Sheet. Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:

  A. Break-even rate
  B. Implied rate
  C. Forward-forward rate
  D. All of the above
  D. All of the above

• Question 18:

  Click on the Detail 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 rate of your position?

  A. 1.1030
  B. 1.1035
  C. 1.1028
  D. 1.1032
  D. 1.1032

• Question 19:

  Click on the Detail Button to view the Formula Sheet. Selling a FRA is the same as:

  A. Making a forward-forward loan
  B. Going over-borrowed
  C. Opening a positive gap
  D. All of the above
  A. Making a forward-forward loan

• Question 20:

  Click on the Detail Button to view the Formula Sheet. Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:

  A. Break-even rate
  B. Implied rate
  C. Forward-forward rate
  D. All of the above
  D. All of the above