ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 41:

  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 42:

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

  A. The Euronext.LIFFE short sterling futures contract has a tick value of GBP 12.50 and a face value of GBP 1,000,000
  B. The Euronext.LIFFE JPY futures contract has a tick value of JPY 2,500 and a face value of JPY 1,000,000,000
  C. The CME eurodollar futures contract has a minimum price interval of one-quarter tick (0.0025) for the nearest contract
  D. All of the above
  C. The CME eurodollar futures contract has a minimum price interval of one-quarter tick (0.0025) for the nearest contract

• Question 43:

  Click on the Detail Button to view the Formula Sheet. Banks have a fiduciary responsibility to ensure that clients have all necessary information to understand the transaction because this:

  A. Will encourage clients to do more business.
  B. Will help prevent potential litigation.
  C. Will help banks sell sophisticated risk management solutions.
  D. Is required by all regulators.
  B. Will help prevent potential litigation.

• Question 44:

  Click on the Detail Button to view the Formula Sheet. The delta 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
  D. The sensitivity of the option value to changes in the price of the underlying

• Question 45:

  Click on the Detail Button to view the Formula Sheet. If a dealer has interest on one side, and the other side is dealt away, the broker should:

  A. Immediately put the price "under reference" and check with the dealer to ascertain his original intention.
  B. Cancel the order.
  C. Continue with the order.
  D. None of the above.
  A. Immediately put the price "under reference" and check with the dealer to ascertain his original intention.

• Question 46:

  Click on the Detail Button to view the Formula Sheet. A dealer has been asked by a broker to go to an exclusive club for the third time in a week. He should:

  A. Agree. Entertainment is a normal part of business.
  B. Refuse. This entertainment is excessive in value and frequency.
  C. Agree but insist on paying half the cost.
  D. Refuse. Going back to the same club is clearly excessive entertainment.
  B. Refuse. This entertainment is excessive in value and frequency.

• Question 47:

  Click on the Detail Button to view the Formula Sheet. An option is:

  A. The right to buy or sell a commodity at a fixed price
  B. The right to buy a commodity at a fixed price
  C. The right but not the obligation to buy or sell a commodity at a fixed price
  D. The right but not the obligation to buy commodity at a fixed price
  C. The right but not the obligation to buy or sell a commodity at a fixed price

• Question 48:

  Click on the Detail Button to view the Formula Sheet. To curb attempted fraud, banks should:

  A. Require greater vigilance by the management and staff.
  B. Take particular care when the beneficiary is a third party to the deal.
  C. Ensure that details of all telephone deals which do not include pre-agreed standard settlement instructions are confirmed by telex or similar means without delay.
  D. All of the above.
  D. All of the above.

• Question 49:

  Click on the Detail Button to view the Formula Sheet. You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/USD. What do you quote ?

  A. 0.7291-94
  B. 0.7294-91
  C. 1.3710-15
  D. None of these
  A. 0.7291-94

• Question 50:

  Click on the Detail Button to view the Formula Sheet. Deals transacted direct or via a broker prior to 5:00am Sydney time on Monday morning:

  A. Are invalid.
  B. Must be approved by senior management before confirmation.
  C. Cannot be entered into without the approval of the local regulator.
  D. Are not considered to have been done in normal conditions or normal market hours.
  D. Are not considered to have been done in normal conditions or normal market hours.