ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 261:

  An `at-the-money' call option:

  A. Costs more than an `in-the-money' call option
  B. Costs less than an `out-of-the-money' call option
  C. Costs more than an `out-of-the-money' call option
  D. Costs the same as an `in-the-money' put option
  C. Costs more than an `out-of-the-money' call option

• Question 262:

  A transaction that entails market price risks may be entered into in the absence of a market price risk limit...

  A. ...only at the discretion of the head of treasury.
  B. ...only at the discretion of the head of trading.
  C. ...as long a counterparty and issuer limit is in place.
  D. ... is not permitted.
  D. ... is not permitted.

• Question 263:

  At the end of the day you are short EUR 10 million against GBP at 0.6712. You are asked to revalue your position at a EUR/GBP rate of 0.6729. What is the resulting profit or loss?

  A. Loss of GBP 17000
  B. Profit of GBP 17,000
  C. Loss of EUR 17,000
  D. Profit of EUR of 17,000
  A. Loss of GBP 17000

• Question 264:

  In the unforeseen event that a particular maturity date is declared a public holiday, what is standard market practice for spot FX?

  A. to extend the contract to the next business day
  B. to shorten the contract to the previous business day
  C. The two parties involved agree to a new maturity date.
  D. There is no standard market practice. ACIs Committee for Professionalism decides the issue on a case-by-case basis.
  A. to extend the contract to the next business day

• Question 265:

  What is the documentation in which the parties agree to the terms that will govern future transactions?

  A. standard settlement instructions
  B. netting agreement
  C. terms of engagement
  D. master agreement
  D. master agreement

• Question 266:

  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 EUR 25,000,000.00 nominal of the 5.5% OAT April 2015, which is worth EUR 28,137,500.00. 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 267:

  What should be done when a voice broker hits a dealer's price as "done" at the very instant the dealer calls "off"?

  A. The deal should not be concluded and the broker should inform both counterparties accordingly.
  B. The transaction should be concluded and the broker should inform both counterparties accordingly.
  C. The broker should immediately inform both counterparties that the deal will have to be renegotiated.
  D. The broker should decide whether the transaction is concluded or not and inform both counterparties accordingly.
  B. The transaction should be concluded and the broker should inform both counterparties accordingly.

• Question 268:

  What happens when a coupon is paid on bond collateral during the term of a sell/buy-back?

  A. Nothing
  B. A margin call is triggered on the seller
  C. A manufactured payment is made to the seller
  D. The equivalent value plus reinvestment income is deducted from the repurchase price
  D. The equivalent value plus reinvestment income is deducted from the repurchase price

• Question 269:

  Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

  A. The bank.
  B. The local bankers association.
  C. The local regulator.
  D. Negotiation between the bank and client.
  A. The bank.

• Question 270:

  As to the Charter of ACI - The Financial Markets Association, what do members not pledge?

  A. to maintain the professional level of competence and the ethical standards of loyalty
  B. to develop sound reciprocal dealing relationships between institutions and to render unconditional mutual assistance
  C. to demonstrate the best ethical behavior in strict accordance with the content and spirit of The Model Code
  D. to maintain the highest possible standards in their profession by constantly setting an example of propriety in business
  B. to develop sound reciprocal dealing relationships between institutions and to render unconditional mutual assistance