ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 421:

  The delta of an option is:

  A. The sensitivily 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 422:

  A dealer in the spot foreign exchange market has to assume that a price given to a voice broker is only valid: A. for a short length of time, usually 30 seconds

  B. until the price has been taken "off" by the dealer
  C. for a short length of time, typically a matter of seconds
  D. for a minute or two
  C. for a short length of time, typically a matter of seconds

• Question 423:

  You quote the following rates to a customer: Spot GBP/CHF 1.4535-45 6MGBP/CHF swap 46/41

  At what rate do you sell GBP to a customer 6-month outright?

  A. 1.4494
  B. 1.4499
  C. 1.4504
  D. 1.4586
  C. 1.4504

• Question 424:

  What is the meaning of "under reference" in the terminology of trading?

  A. a term the quoting dealer uses to caution the receiver of the quote that the price may have to be re- quoted at the receiver's risk
  B. the qualification that the rate quoted in the market may no longer be valid and requires confirmation before any trades can be agreed upon
  C. the statement that the rates quoted by the broker are for indication only
  D. an acknowledgement by the dealer receiving the quote that the rate may have to be re-quoted at the receiver's risk
  B. the qualification that the rate quoted in the market may no longer be valid and requires confirmation before any trades can be agreed upon

• Question 425:

  Which of the following is a Eurocurrency deposit?

  A. A 3-month deposit of USD 10,000,000.00 offered by a US bank in New York
  B. A 3-month deposit of USD 10,000,000.00 offered by the US branch of a UK bank in New York
  C. A 3-month deposit of USD 10,000,000.00 offered by a US bank in London
  D. A 3-month deposit of GBP 10,000,000.00 offered by the UK branch of a US bank in London
  C. A 3-month deposit of USD 10,000,000.00 offered by a US bank in London

• Question 426:

  Under what circumstances are banks allowed to "park" deals or positions with a counterparty?

  A. Not under any circumstances, since the "parking" of deals or positions should be prohibited
  B. in conditions of exceptional volatility
  C. only if the two counterparties to the deal agree
  D. only if "parking" of deals or positions has been approved by senior management
  A. Not under any circumstances, since the "parking" of deals or positions should be prohibited

• Question 427:

  What does the Model Code recommend in respect of prices and orders made on electronic trading platforms?

  A. They must be posted with a clear intent to be tradable.
  B. They must be identified as indicative rates only.
  C. They must be posted subject to later credit line approval.
  D. They need not be posted in an appropriate trading style.
  A. They must be posted with a clear intent to be tradable.

• Question 428:

  Which of the following risks are considered market risks?

  A. interest rate, currency, equity and commodity risk
  B. interest rate, currency, equity and default risk
  C. interest rate, equity, liquidity and default risk
  D. legal, reputation and regulatory risk
  A. interest rate, currency, equity and commodity risk

• Question 429:

  All other things being equal, if a bank borrows short and lends long what is the effect on the liquidity risk of the bank?

  A. positive
  B. changes only when interest rates levels are high
  C. negative
  D. changes only when interest rates levels are low
  C. negative

• Question 430:

  How are Overnight Indexed Swaps settled?

  A. periodic exchange of fixed and floating payments up to and including maturity
  B. at maturity by net payment
  C. after maturity by exchange of fixed and floating payments
  D. after maturity by net payment
  D. after maturity by net payment