ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 301:

  Half an hour ago you were made a price in USD/CAD of 1.5250-55 and sold USD 10 million. The price is now 1.5232-37 and you square your position. What is your profit or loss?

  A. +CAD 23,000
  B. +CAD 13,000
  C. +CAD 16,000
  D. -CAD 13,000
  B. +CAD 13,000

• Question 302:

  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 at-the-money put option
  C. Costs more than an out-of-the-money call option

• Question 303:

  What is the correct interpretation of a EUR 5,000,000.00 one-week VaR figure with a 99% confidence level?

  A. A loss of at least EUR 5,000,000.00 can be expected in 99 out of the next 100 weeks.
  B. A loss of at most EUR 5,000,000.00 can be expected in 1 out of the next 100 weeks.
  C. A loss of at most EUR 5,000,000.00 can be expected in 1 out of the next 100 days.
  D. A loss of at least EUR 5,000,000.00 can be expected in 1 out of the next 100 weeks.
  D. A loss of at least EUR 5,000,000.00 can be expected in 1 out of the next 100 weeks.

• Question 304:

  You need to buy USD 5,000,000 against GBP and are quoted the following rates concurrently by two separate banks: 1.6045-50 and 1.6047-52. At which rate do you trade?

  A. 1.6045
  B. 1.6047
  C. 1.6050
  D. 1.6052
  B. 1.6047

• Question 305:

  You have written a EUR/USD knock-in option for a bank counterparty. At 6pm New York time on Friday, the instrike point is breached. This is confirmed on screens. The counterparty contacts you to confirm that the option has been knocked in.

  A. The deal is done. You should confirm with your counterparts.
  B. If the knock-in is confirmed by a New York price source, the deal is done and you should confirm with your counterparty.
  C. The recognised closing time for the currency markets is 6:00pm New York time in Friday, so the deal is done and you should confirm with your counterparty.
  D. The recognised closing time for the currency markets is 5:00pm NewYork time in Friday, so no deal is done.
  D. The recognised closing time for the currency markets is 5:00pm NewYork time in Friday, so no deal is done.

• Question 306:

  You are entering into a swap as a fixed rate receiver with Party A and into an offsetting position with party

  A. All other things being equal, which of the scenarios below will lead to the greatest increase in the sum of the Credit Value Adjustments for A and B?
  B. upward shift of the swap curve and rating downgrade of party A
  C. downward shift of the swap curve and rating downgrade of party A
  D. downward shift of the swap curve and rating downgrade of party B
  E. downward shift of the swap curve only
  B. upward shift of the swap curve and rating downgrade of party A

• Question 307:

  USD/CHF is quoted to you at 0.9290-93 and GBP/USD at 1.5320-30. At what rate could you buy GBP and sell CHF?

  A. 1.4242
  B. 1.4232
  C. 1.4246
  D. 1.4237
  C. 1.4246

• Question 308:

  The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR 10,000,000.00 million nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00. If you have to give an initial margin of 2%, the Repurchase Price is:

  A. EUR 11,035,336.41
  B. EUR 11,035,351.74
  C. EUR 11,039,752.32
  D. EUR 11,039,767.65
  D. EUR 11,039,767.65

• Question 309:

  Which of the following currency risks could only be hedged by a non deliverable forward (NDF)?

  A. an exposure in Latvian Lats (LVL)
  B. an exposure in Russian Rouble (RUB)
  C. an exposure in Romanian Leu (RON)
  D. an exposure in Bulgarian Lev (BGN)
  B. an exposure in Russian Rouble (RUB)

• Question 310:

  A bank wants to use STIR futures for establishing a macro hedge for the asset portfolio. Which of the following statements is correct?

  A. It is reasonable for the bank to purchase futures contracts if they expect interest rates to rise.
  B. It is reasonable for the bank to take a long position in anticipation of rising rates.
  C. Losses (or gains) in the value of the cash position can be largely offset by gains (or losses) in the value of the futures position
  D. It is reasonable for the bank to sell futures contracts if it expects interest rates to fall
  C. Losses (or gains) in the value of the cash position can be largely offset by gains (or losses) in the value of the futures position