ACI 3I0-012 Online Practice Questions and Exam Preparation

ACI 3I0-012 Online Questions & Answers

• Question 61:

  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 nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00, with no initial margin. The Repurchase Price is:

  A. EUR 10,000,500.00
  B. EUR 10,000,486.11
  C. EUR 11,260,563.00
  D. EUR 11,260,547.36
  C. EUR 11,260,563.00

• Question 62:

  If the issuer of the collateral used in a repo defaults during the term of the transaction, who suffers the loss?

  A. Buyer
  B. Seller
  C. Issuer
  D. It depends on the agreement between the buyer and seller
  B. Seller

• Question 63:

  You bought a CAD 8,000,000.00 6x9 FRA at 1.95%. The settlement rate is 3-month (90-day) BBA LIBOR, which is fixed at 0.9500%. What is the settlement amount at maturity?

  A. You pay CAD 20,000.00
  B. You receive CAD 20,000.00
  C. You pay CAD 19,952.61
  D. You receive CAD 19,952.61
  C. You pay CAD 19,952.61

• Question 64:

  The use of off-market rates is discouraged and should be permitted only:

  A. When the bank's income is secured on the trade.
  B. If the unsecured credit is taken into account.
  C. It the bank knows the customer very well.
  D. When there are written procedures and policies for such transactions.
  D. When there are written procedures and policies for such transactions.

• Question 65:

  Click on the Exhibit Button to view the Formula Sheet. You are short of 6 Dec euro dollar futures contracts at 98.10. Yesterday, the closing price was 98.15. Today's closing price is 97.905.Whatvariation margin will be due?

  A. You will have to pay USD 612.50
  B. You will receive USD 612.50
  C. You will have to pay USD 3,675.00
  D. You will receive USD 3,675.00
  D. You will receive USD 3,675.00

• Question 66:

  Which of the following is true?

  A. The 3-month EURODOLLAR futures contract has a basis point value of USD 50.00 and a face value of USD 1,000,000.00
  B. The 3-month EURIBOR futures contract has a a basis point value of EUR 12.50 and a face value of EUR 500,000.00
  C. The 3-month Sterling (SHORT STERLING) futures contract has a a basis point value of GBP 12.50 and a face value of GBP 500,000.00
  D. The 3-month Euro Swiss Franc (EUROSWISS) futures contract has a a basis point value of CHF 50.00 and a face value of CHF 2,000,000.00
  C. The 3-month Sterling (SHORT STERLING) futures contract has a a basis point value of GBP 12.50 and a face value of GBP 500,000.00

• Question 67:

  By what means should a financial institution preferably submit SSI changes and notifications to its clients?

  A. e-mail
  B. fax or letter
  C. MTn99 SWIFT message
  D. MT670/671 SWIFT message
  D. MT670/671 SWIFT message

• Question 68:

  You are the buyer of a receiver's swap. All other things being equal your counterparty risk is increasing if

  A. the swap curve is shifting downwards
  B. the swap curve is shifting upwards
  C. swaption volatilities are decreasing
  D. time to expiry is becoming shorter
  A. the swap curve is shifting downwards

• Question 69:

  The rho of an option is:

  A. The sensitivity 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
  A. The sensitivity of the option value to changes in interest rates

• Question 70:

  Which one of the following statements about "CLS rescinds" is correct?

  A. CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 00:00 CET deadline.
  B. CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 06:30 CET deadline.
  C. CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank before the 00:00 CET deadline.
  D. CLS settlement members may rescind instructions bilaterally only if the rescind messages reach the CLS Bank after the 06:30 CET deadline.
  A. CLS settlement members may rescind instructions unilaterally provided that the rescind messages reach the CLS Bank before the 00:00 CET deadline.