ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 51:

  What is a short straddle option strategy?

  A. A long call option + long put option with the same strike prices
  B. A short call option + short put option with the same strike prices
  C. A long call option + short put option with the same strike prices
  D. A short call option + long put option with the same strike prices
  B. A short call option + short put option with the same strike prices

• Question 52:

  When banks transact FX swaps, the spot price should be determined:

  A. anytime after the swap is transacted
  B. before the swap is transacted
  C. immediately after the swap is transacted
  D. no less than 24 hours after the completion of the swap
  C. immediately after the swap is transacted

• Question 53:

  Your agent bank accepts your back-valuation request for 1 day on an amount of EUR 50,000,000.00. EONIA is 0.375% and the ECB marginal lending facility rate is 1.50%. Applying conventional administration fees, how much will this be charged?

  A. EUR 620.83
  B. EUR 868.06
  C. EUR 968.06
  D. EUR 2,183.33
  C. EUR 968.06

• Question 54:

  How would you delta hedge an `at-the-money' long call option?

  A. Go short of the underlying commodity equal to 50% of the size of the option contract
  B. Go long of the underlying commodity equal to 50% of the size of the option contract
  C. Go long of the underlying commodity equal to the full size of the option contract
  D. Go short of the underlying commodity equal to the full size of the option contract
  A. Go short of the underlying commodity equal to 50% of the size of the option contract

• Question 55:

  You have taken 3-month (92 days) deposits of CAD 12,000,000.00 at 1.10% and CAD 6,000,000.00 at 1.04%. Minutes later, you quote 3-month CAD 1.09-14% to another bank. The other dealer takes the CAD 18,000,000.00 at your quoted price. What is your profit or loss on this deal?

  A. CAD 2,722.19
  B. CAD 460.00
  C. CAD 3,220.00
  D. CAD 2,760.00
  D. CAD 2,760.00

• Question 56:

  If you funded your fixed-income investment portfolio with short-term deposits, how would you hedge your interest rate exposure with interest rate swaps?

  A. Pay fixed and receive floating through swaps for the term of the portfolio
  B. Pay floating and receive fixed through swaps for the term of the portfolio
  C. You cannot: the maturity of the swaps would be longer than that of the deposits
  D. You should not: there would be too much basis risk
  A. Pay fixed and receive floating through swaps for the term of the portfolio

• Question 57:

  Today's spot value date is the 29th of February. What is the maturity date of a 4-month USD deposit deal today? Assume no bank holidays.

  A. Thursday 27th June
  B. Friday 28th June
  C. Saturday 29th June
  D. Monday 1st July
  B. Friday 28th June

• Question 58:

  Using reprising gap analysis, a bank's balance sheet is considered liability-sensitive to market interest rate changes, if:

  A. more liabilities than assets will be reprised in the near term
  B. more assets than liabilities will be reprised in the near term
  C. more assets than liabilities have variable rates or short residual maturities
  D. non-interest bearing liabilities are greater than non-interest bearing assets
  A. more liabilities than assets will be reprised in the near term

• Question 59:

  The Market Segmentation hypothesis suggests that the yield curve bends at some point along its length because:

  A. Investors have less appetite for longer-term investments
  B. Borrowers prefer to borrow long-term but lenders prefer to lend short-term
  C. Different types of institution tend to specialize in different maturity ranges
  D. The risk premium becomes significant only at longer maturities
  C. Different types of institution tend to specialize in different maturity ranges

• Question 60:

  Assume the following scenario:

  Bank A bids for EUR 5,000,000.00 at 1.3592.

  Bank B offers EUR 10,000,000.00 at 1.3597.

  Broker XYZ quotes to the market EUR/USD 1.3592/97.

  Bank C takes the offer at 1.3597.

  What information is the broker obliged to reveal?

  A. the name of Bank A and Bank B
  B. the names of Bank B and Bank C
  C. the amount that was bid but not the name of Bank A
  D. the amount taken by Bank C as well as the amount that was bid
  B. the names of Bank B and Bank C