ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 21:

  Click on the Detail Button to view the Formula Sheet. What is an FX swap?

  A. An exchange of two streams of interest payments in different currencies and an exchange of the principal amounts of those currencies at maturity
  B. A spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between two parties
  C. An exchange of currencies on a date beyond spot and at a price fixed today
  D. None of the above
  B. A spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between two parties

• Question 22:

  Click on the Detail Button to view the Formula Sheet. What is the primary function of GC repo, particularly very short -term transactions?

  A. Financing long positions
  B. Covering short positions
  C. Interest rate positioning
  D. Dividend tax arbitrage
  A. Financing long positions

• Question 23:

  Click on the Detail Button to view the Formula Sheet.

  From the following GBP deposit rates:

  1M (31-day) GBP deposits3.15%

  2M (61-day) GBP deposits3.25%

  3M (91-day) GBP deposits3.41%

  4M (120-day) GBP deposits3.56%

  5M (152-day) GBP deposits3.73%

  6M (182-day) GBP deposits3.90%

  calculate the 3x4 forward-forward rate.

  A. 3.410%
  B. 3.977%
  C. 3.996%
  D. 3.997%
  D. 3.997%

• Question 24:

  Click on the Detail Button to view the Formula Sheet. You deal over the phone with a counterparty. The subsequent confirmation differs from the terms agreed verbally. What is the result?

  A. The confirmation takes precedence as it is a written contract.
  B. The matter will have to be submitted to arbitration in order to establish the mutual intent of the parties.
  C. It depends on local law.
  D. The verbal agreement is binding.
  D. The verbal agreement is binding.

• Question 25:

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

  A. The Model Code is published by ACI's Committee for Professionalism.
  B. The Model Code sets out the practicalities of dealing in those financial instruments listed in the Model Code.
  C. The Model Code is an attempt to deal with the legal issues relating to every conceivable financial instrument.
  D. The Model Code sets out the manner and spirit in which foreign exchange and money market business should be conducted in order that participants maintain high standards of professionalism, integrity and ethical conduct.
  C. The Model Code is an attempt to deal with the legal issues relating to every conceivable financial instrument.

• Question 26:

  Click on the Detail Button to view the Formula Sheet. Which of the following is issued by auction?

  A. Treasury bill
  B. CD
  C. BA
  D. USCP
  A. Treasury bill

• Question 27:

  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 28:

  Click on the Detail Button to view the Formula Sheet. The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75-80%. As collateral, you are offered EUR25 million nominal of the 5.5% OAT April 2006, which is worth EUR 28,137,500. If you impose an initial margin of 1%, the Repurchase Price is:

  A. EUR 27,947,276.43
  B. EUR 27,946,077.08
  C. EUR 27,950,071.43
  D. EUR 27,948,871.97
  D. EUR 27,948,871.97

• Question 29:

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

  A. Banks should not ask brokers to disclose details of third party transactions unless they are between overseas principals.
  B. Banks should not ask brokers to disclose details of third party transactions unless these transactions are already settled.
  C. Banks should not ask brokers to disclose transactions between third parties in any circumstances.
  D. Banks should not ask brokers for details of third party transactions unless senior management has approved.
  C. Banks should not ask brokers to disclose transactions between third parties in any circumstances.

• Question 30:

  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
  D. To anticipate very high volatility in the price of the underlying commodity