ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 201:

  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 202:

  Click on the Detail Button to view the Formula Sheet. What is a Vostro account?

  A. Your account at another bank
  B. A foreign bank's account in your bank in your domestic currency
  C. An account in your bank used for internal transactions
  D. A customer's account at your bank
  B. A foreign bank's account in your bank in your domestic currency

• Question 203:

  Click on the Detail Button to view the Formula Sheet. Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO / USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:

  A. The name of Banks A and B
  B. The name of Bank B only.
  C. The amount that was bid but not the name of Bank A
  D. None of the above
  B. The name of Bank B only.

• Question 204:

  Click on the Detail Button to view the Formula Sheet.

  Your are quoted the following rates:

  spot CHF/JPY 80.12-22

  3M CHF/JPY 25.5/22.5

  At what rate can you buy 3-month outright JPY against CHF?

  A. 79.995
  B. 79.965
  C. 79.895
  D. 79.865
  D. 79.865

• Question 205:

  Click on the Detail Button to view the Formula Sheet. Automatic trading systems for interbank spot FX display the best prices entered into the systems by users and:

  A. Display the names of those users along their prices
  B. Offer pre-trade anonymity to users quoting prices
  C. Offer pre and post-trade anonymity to users quoting prices
  D. Offer users the choice of whether to remain anonymous
  B. Offer pre-trade anonymity to users quoting prices

• Question 206:

  Click on the Detail Button to view the Formula Sheet. If you funded a fixed-income investment portfolio with short-term deposits, how would you hedge your interest rate exposure with interest rate swaps?

  A. Pay fixed and receive floating through swaps for the term of the portfolio
  B. Pay floating and receive fixed through swaps for the term of the portfolio
  C. You cannot : the maturity of the swaps would be longer than that of the deposits
  D. You should not: there would be too much basis risk
  A. Pay fixed and receive floating through swaps for the term of the portfolio

• Question 207:

  Click on the Detail Button to view the Formula Sheet. The extension of forward FX contracts at their historic rates is only allowed when:

  A. Prior management approval has been sought.
  B. They are executed within six months.
  C. They are extended for not more than one year.
  D. All of the above.
  A. Prior management approval has been sought.

• Question 208:

  Click on the Detail Button to view the Formula Sheet. The Interest Rate Parity Theorem states that:

  A. Interest rates in different currencies will tend to move into line with each other over time
  B. Interest rates in different currencies differ due to differences in expectations about inflation
  C. Selling a low interest rate currency to invest a high interest rate currency will only be profitable if one hedges the currency risk
  D. Selling a low interest rate currency to invest in a high interest rate currency should not be profitable if one hedges the currency risk
  D. Selling a low interest rate currency to invest in a high interest rate currency should not be profitable if one hedges the currency risk

• Question 209:

  Click on the Detail Button to view the Formula Sheet. 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 contacts you to confirm that the option has been knocked in.

  A. The deal is done. You should confirm with your counterparty.
  B. If the knock-in is confirmed by a New York price source, the deal is done and you should confirm with your counterparty.
  C. The recognised closing time for the currency markets is 6:00pm New York time in Friday, so the deal is done and you should confirm with your counterparty.
  D. The recognised closing time for the currency markets is 5:00pm New York time in Friday, so no deal is done.
  D. The recognised closing time for the currency markets is 5:00pm New York time in Friday, so no deal is done.

• Question 210:

  Click on the Detail Button to view the Formula Sheet. What is a long straddle option strategy?

  A. A long call option + long put option with the same strike prices
  B. A short call option + short put option with the same strike prices
  C. A long call option + short put option with the same strike prices
  D. A short call option + long put option with the same strike prices
  A. A long call option + long put option with the same strike prices