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Viewing questions 76-90 out of questions
Questions # 76:

Where sale and repurchase agreements or stock borrowing or lending transactions are entered into:

Options:
A.

screen services, brokers and other third party providers can all be useful sources of data

B.

For periods less than one month, the maturity date will be the first date that is a business day that is within one, seven, fourteen days from the value date, but when near the month end must never be a date in the next calendar month

C.

Inter-dealer brokers or the automated trading system need not be notified when participants attempt to utilize odd settlement dates

D.

It is not recommended that legal opinion should be obtained on the enforceability of the contract

Expert Solution
Questions # 77:

A US security yields 7% on an annually-compounded bond basis. What is the equivalent annually- compounded money market yield?

Options:
A.

7.09%

B.

7.03%

C.

6.90%

D.

6.95%

Expert Solution
Questions # 78:

Repo is said to have “double indemnity” due to the creditworthiness of the counterparty and:

Options:
A.

A written legal agreement between the parties

B.

The oversight of the transaction by the custodian of the collateral

C.

The creditworthiness of the collateral

D.

The right of close-out and set-off in an event of default

Expert Solution
Questions # 79:

The forward points are calculated using:

Options:
A.

The level of interest rates in the base currency

B.

The level of interest rates in the quoted currency

C.

The interest rates in the two currencies

D.

Your expectations of the future spot rate

Expert Solution
Questions # 80:

If 6-month USD/CAD forward rates are quoted at 40/45, which of the following statements is correct?

Options:
A.

USD rates are higher than CAD rates in the 6-month

B.

CAD rates are higher than USD rates in the 6-month

C.

There is a positive USD yield curve

D.

There is not enough information to decide

Expert Solution
Questions # 81:

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?

Options:
A.

You pay JPY 440,694

B.

You receive JPY 440,694

C.

You pay JPY 438,882

D.

You receive JPY 438,882

Expert Solution
Questions # 82:

It is June. You are over-borrowed from October to January on your deposit book. How would you hedge using FRAs?

Options:
A.

Sell 3x6

B.

Buy 3x6

C.

Sell 4x7

D.

Buy 4x7

Expert Solution
Questions # 83:

Your are quoted the following rates:

Spot CHF/JPY105.12-22

3M CHF/JPY 3.5/4.5

At what rate can you buy 3-month outright JPY against CHF?

Options:
A.

105.085

B.

105.265

C.

108.62

D.

105.155

Expert Solution
Questions # 84:

VaR increases with:

Options:
A.

lower correlation of underlying risk factors

B.

a shorter time horizon

C.

a lower confidence level

D.

a higher confidence level

Expert Solution
Questions # 85:

What is the Overnight Index for GBP?

Options:
A.

SONIA

B.

STINA

C.

STONIA

D.

EONIA

Expert Solution
Questions # 86:

When considering interest rate risk in the banking book, retail demand deposits without fixed contractual maturity:

Options:
A.

should be assumed to have zero duration

B.

should be treated like other instantly variable rate liabilities, such as overnight money market borrowing.

C.

should be assumed to have a low correlation with money market reference rates

D.

represent a minor contributor to interest rate risk and can safely be disregarded

Expert Solution
Questions # 87:

What is an FX swap from spot?

Options:
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

Expert Solution
Questions # 88:

What is the ISO code for palladium?

Options:
A.

XAU

B.

XAG

C.

XPT

D.

XPD

Expert Solution
Questions # 89:

The “spot basis” of a 2 against 4 months EUR/USD forward/forward swap is:

Options:
A.

usually the current spot EUR/USD mid-market rate

B.

commonly the prevailing 4-month forward EUR/USD mid-rate

C.

always the forward EUR/USD bid rate of the first swap leg

D.

generally the prevailing 2-month forward EUR/USD mid-rate

Expert Solution
Questions # 90:

You are quoted the following market rates:

Spot AUD/CAD 1.0600

12M (360-day) AUD 3.40%

12M (360-day) CAD 1.55%

What are the 12-month AUD/CAD forward points?

Options:
A.

+190

B.

-193

C.

-192

D.

-190

Expert Solution
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Viewing questions 76-90 out of questions