ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 241:

  Which of the following correctly states the Model Code's recommendations regarding terms and documentation?

  A. Such documentation should be bi-laterally signed by the dealers of both principals intending to transact business.
  B. When using such agreements... the wording in the agreement must be changed to match the actual transaction details after trading.
  C. Such documentation should be signed, in many cases before any applicable market transactions are entered into.
  D. For instruments where standard terms do not exist, the Model Code recommends that no documentation should be used.
  C. Such documentation should be signed, in many cases before any applicable market transactions are entered into.

• Question 242:

  From the following CAD rates:

  1M (31-day) CAD deposit 0.95% 1x2 CAD (30-day) FRA 1.21% 2x3 CAD (31-day) FRA 2.01%

  Calculate the 3-month implied cash rate.

  A. 1.42%
  B. 1.39%
  C. 2.01%
  D. 4.21%
  B. 1.39%

• Question 243:

  If 6-month EUR/AUD is quoted at 129/132, 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 244:

  If a dealer needs to hedge an over-lent 3x6 position against 1MM dates for which the FRA is quoted 1.30- 1.34% and futures at 98.64, which would be cheapest for him (ignoring margin costs on futures positions) to cover his gap?

  A. FRA
  B. Futures
  C. No difference
  D. Too little information to decide
  A. FRA

• Question 245:

  The market is quoting:

  6-month (182-day) CAD 1.25% 12-month (366-day) CAD 1.55%

  What is the 6x12 rate in CAD?

  A. 0.300%
  B. 0.946%
  C. 1.935%
  D. 1.835%
  D. 1.835%

• Question 246:

  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 247:

  Today, you sell GBP 5,000,000.00 to a customer against JPY for spot value. Tomorrow, the customer defaults. What is your exposure called?

  A. Replacement risk
  B. Settlement risk
  C. Legal risk
  D. Basis risk
  A. Replacement risk

• Question 248:

  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 249:

  Which of the following CHF/JPY quotes that you have received is the best rate for you to buy CHF?

  A. 105.80
  B. 105.75
  C. 105.70
  D. 105.85
  C. 105.70

• Question 250:

  What is the day count/annual basis convention for euroyen deposits?

  A. Actual/365
  B. Actual/360
  C. Actual/actual
  D. 30E/360
  B. Actual/360