ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 61:

  Click on the Detail Button to view the Formula Sheet. If a broker refers to "the payer of 5-year euro at 4.12", what is this party doing?

  A. Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.
  B. Paying a fixed rate of 4.12% per annum on an actual/actual basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.
  C. Paying a 5-year euro deposit and receiving a rate of interest of 4.12% on an actual/360 basis.
  D. Taking a 5-year euro deposit and paying a rate of interest of 4.12% on an actual/360 basis.
  A. Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.

• Question 62:

  Click on the Detail Button to view the Formula Sheet. A CD with a face value of USD50 million and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

  A. +USD 373,599.00
  B. +USD 186,099.00
  C. -USD 1,400.99
  D. Nil
  C. -USD 1,400.99

• Question 63:

  Click on the Detail Button to view the Formula Sheet. What is the ISO code for the Lebanon pound?

  A. LEP
  B. LBD
  C. LBP
  D. LNP
  C. LBP

• Question 64:

  Click on the Detail Button to view the Formula Sheet. What does the Model Code say about netting?

  A. Market participants are strongly recommended to net bilateral transactions with counterparties where activity justifies it.
  B. Market participants should establish payments netting agreements with cross-border counterparties where activity justifies it.
  C. Market participants should establish legally viable bilateral netting agreements with counterparties where activity justifies it.
  D. Market participants should establish legally viable multilateral netting agreements where activity justifies it.
  C. Market participants should establish legally viable bilateral netting agreements with counterparties where activity justifies it.

• Question 65:

  Click on the Detail Button to view the Formula Sheet. The mid-rate for USD/CHF is 1.3950 and the mid-rate for AUD/USD is 0.7060. What is the mid- rate for CHF/AUD?

  A. 0.9849
  B. 1.0154
  C. 1.9759
  D. 0.5061
  A. 0.9849

• Question 66:

  Click on the Detail Button to view the Formula Sheet. It is June. You are over-borrowed from October to January on your deposit book. How would you hedge using FRAs?

  A. Sell 3x6
  B. Buy 3x6
  C. Sell 4x7
  D. Buy 4x7
  C. Sell 4x7

• Question 67:

  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 68:

  Click on the Detail Button to view the Formula Sheet. What are the secondary market proceeds of a CD with a face value of EUR 5 million and a coupon of 3% that was issued at par for 182 days and is now trading at 3% but with only 7 days remaining to maturity?

  A. EUR 4,997,085.03
  B. EUR 5,000,000.00
  C. EUR 5,071,086.45
  D. EUR 5,072,874.16
  D. EUR 5,072,874.16

• Question 69:

  Click on the Detail Button to view the Formula Sheet. The delta of an at-the-money long call option is:

  A. Between +0.5 and +1
  B. +0.5
  C. Between 0 and +0.5
  D. Zero
  B. +0.5

• Question 70:

  Click on the Detail Button to view the Formula Sheet. Brokers should confirm all transactions:

  A. Initially by fax or other acceptable electronic means, then in writing.
  B. Only if the deal is between overseas counterparties and for value today.
  C. Only if the transaction is not for a marketable amount .
  D. To both counterparties immediately by fax or other acceptable electronic means.
  D. To both counterparties immediately by fax or other acceptable electronic means.