ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 651:

  Purchasing a USD/JPY call option is equivalent to:

  A. Selling an JPY/USD put option
  B. Selling a JPY/USD call option
  C. Purchasing an JPY/USD put option
  D. None of the above
  C. Purchasing an JPY/USD put option

• Question 652:

  When is interest conventionally due on a 3-year interbank EUR deposit?

  A. At maturity
  B. Annually
  C. Semi-annually
  D. Quarterly
  B. Annually

• Question 653:

  An important reason for trading a futures contract rather than an FRA is:

  A. The expense of settling an FRA
  B. The reduced counterparty risk on a futures exchange
  C. The reduced basis risk on futures
  D. The superior interest rate risk on FRAs
  B. The reduced counterparty risk on a futures exchange

• Question 654:

  How can options be used to synthesize a short position in the underlying commodity?

  A. A short put option + long call option at the same strike price
  B. A long put option + short call option at the same strike price
  C. A short put option + short call option at the same strike price
  D. A long put option + long call option at the same strike price
  B. A long put option + short call option at the same strike price

• Question 655:

  You are paying 1,00% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10,000,000.00 interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 0.95%. How would you hedge the swap using FRAs?

  How to hedge an IRS with a strip of FRAs?

  A. buy a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
  B. sell a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
  C. buy a strip of 6x12, 12x18 and 18x24 FRAs
  D. sell a strip of 6x12, 12x18 and 18x24 FRAs
  D. sell a strip of 6x12, 12x18 and 18x24 FRAs

• Question 656:

  You have quoted spot USD/CHF at 0.9423-26. Your customer says "I take 5". What does he mean?

  A. He buys CHF 5,000,000.00 at 0.9423
  B. He buys CHF 5,000,000.00 at 0.9426
  C. He buys USD 5,000,000.00 at 0.9423
  D. He buys USD 5,000,000.00 at 0.9426
  D. He buys USD 5,000,000.00 at 0.9426

• Question 657:

  You have quoted your customer the following CAD deposit rates:

  1M 1.00-05% 2M 1.06-11% 3M 1.13-18%

  The customer says, "I give you CAD 20,000,000.00 in the two's". What have you done?

  A. Borrowed CAD 20,000,000.00 at 1.06%
  B. Lent CAD 20,000,000.00 at 1.11%
  C. Borrowed CAD 20,000,000.00 at 1.11%
  D. Lent CAD 20,000,000.00 at 1.06%
  A. Borrowed CAD 20,000,000.00 at 1.06%

• Question 658:

  You wish to sell a customer GBP/USD for value tomorrow. How can you hedge yourself?

  A. Sell and buy GBP/USD T/N
  B. Buy and sell GBP/USD T/N
  C. Sell GBP/USD spot, and sell and buy GBP/USD T/N
  D. Buy GBP/USD spot, and buy and sell GBP/USD T/N
  D. Buy GBP/USD spot, and buy and sell GBP/USD T/N

• Question 659:

  What is Model Codes recommendation on the settlement of dirrerences by "points"?

  A. It is not favoured.
  B. It may be permitted when allowed by the local market regulator.
  C. Itis unconditionally accepted bythe Code.
  D. It is allowed only if senior management approval is obtained.
  A. It is not favoured.

• Question 660:

  A corporate wishing to hedge the interest rate risk on its floating-rate borrowing would:

  A. Sell interest rate caps
  B. Sell futures
  C. Sell FRAs
  D. Buy futures
  B. Sell futures