ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 661:

  In spite of having agreed to a deal, dealers are not bound to the deal if it is subject to documentation. The Model Code:

  A. Does not regard this as a good practice.
  B. Urge dealers to be bear this in mind, as this is common practice for capital market deals.
  C. Does not comment on this matter.
  D. Recommends that national ACI Associations deal with this according to their local customs.
  A. Does not regard this as a good practice.

• Question 662:

  Which of the following currencies is quoted on an actual/360 basis?

  A. EUR
  B. JPY
  C. CHF
  D. All of the above
  D. All of the above

• Question 663:

  How would you delta hedge a deeply "in-the-money" short put 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 more than 50% of the full size of the option contract
  D. Go short of the underlying commodity equal to more than 5O% of the full size of the option contract
  D. Go short of the underlying commodity equal to more than 5O% of the full size of the option contract

• Question 664:

  You sold a JPY 500,000,000 1x12 FRA at 0.35%. The settlement rate is 11-month (334-day) JPY LIBOR, which is fixed at 0.4450%. What is the settlement amount at maturity?

  A. You pay JPY 440,694
  B. You receive JPY 440,694
  C. You pay JPY 438,882
  D. You receive JPY 438,882
  C. You pay JPY 438,882

• Question 665:

  A "time option" is an outright forward FX transaction where the customer:

  A. has the option to fulfill the outright forward or not at maturity
  B. may freely choose the maturity, given a 24-hour notice to the bank
  C. can choose any maturity within a previously fixed period
  D. may decide to deal at the regular maturity or on either the business day before or after
  C. can choose any maturity within a previously fixed period

• Question 666:

  What is an FX swap from spot?

  A. An exchange of two streams of interest payments in different currencies and an exchange of the principal amounts of those currencies at maturity
  B. A spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between two parties
  C. An exchange of currencies on a date beyond spot and at a price fixed today
  D. An agreement to buy (sell) an amount of base currency value spot and simultaneously resell (buy back) the same amount to the same counterpart value today
  B. A spot sale (purchase) and a forward purchase (sale) of two currencies agreed simultaneously between two parties

• Question 667:

  What is the value date of a 1-month outright forward FX transaction dealt today, if today's spot date is Monday, 30th January? Assume there are no bank holidays and that the year is not a leap year.

  A. 2nd March
  B. 1st March
  C. 2gth February
  D. 28th February
  D. 28th February

• Question 668:

  You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10 million interest rate swap with exactly two years to maturity . 6-month LIBOR for the next payment date is fixed today at 4.95%. You expect 6month LIBOR in 6 months to fix at 5.25%, in 12 months at 5.35% and in 18 months at 5.40%. What do you expect the net settlement amounts to be over the next 2 years? Assume 30-day months.

  A. pay 250, receive 1,250, receive 1,750, receive 2,000
  B. receive 250, pay 1,250, pay 1,750, pay 2,000
  C. pay 2,500, receive 12,500, receive 17,500, receive 20,000
  D. receive 2,500, pay 12,500, pay 17,500, pay 20,000
  C. pay 2,500, receive 12,500, receive 17,500, receive 20,000

• Question 669:

  Convert 8.25% quoted on a semi-annually compounded money market basis for USD to the equivalent annually-compounded bond basis.

  A. 8.30%
  B. 8.52%
  C. 8.54%
  D. 8.69%
  C. 8.54%

• Question 670:

  A 3-month (91-day) US Treasury bill is quoted at a rate of discount of 4.25%. What is its true yield?

  A. 4.19%
  B. 4.25%
  C. 4.30%
  D. 4.31%
  C. 4.30%