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Viewing questions 106-120 out of questions
Questions # 106:

What type of institution is the typical drawer of banker’s acceptances?

Options:
A.

Credit institution

B.

Investment bank

C.

Corporate

D.

Central Bank

Expert Solution
Questions # 107:

An option is:

Options:
A.

The right to buy or sell a commodity at a fixed price

B.

The right to buy a commodity at a fixed price

C.

The right but not the obligation to buy or sell a commodity at a fixed price

D.

The right but not the obligation to buy a commodity at a fixed price

Expert Solution
Questions # 108:

The major risk to the effectiveness of netting is:

Options:
A.

Credit risk

B.

Settlement risk

C.

Liquidity risk

D.

Legal risk

Expert Solution
Questions # 109:

Responsibility for the activities of all personnel engaged in dealing (both dealers and support staff) for both principals and brokers lies with:

Options:
A.

the market supervisor

B.

the national ACI association

C.

the management of such organizations

D.

the central bank

Expert Solution
Questions # 110:

Which party usually takes an initial margin in a classic repo?

Options:
A.

The buyer

B.

The seller

C.

Neither

D.

Both

Expert Solution
Questions # 111:

You quote a customer spot AUD/USD at 1.0350-55. The T/N swap is quoted to you at 3/2. The customer asks to buy USD for value tomorrow. What rate should you quote him to break-even against the other rates?

Options:
A.

1.0352

B.

1.0353

C.

1.0347

D.

1.0348

Expert Solution
Questions # 112:

The vega of an option is:

Options:
A.

The sensitivity of the option value to changes in interest rates

B.

The sensitivity of the option value to changes in implied 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

Expert Solution
Questions # 113:

What is the Overnight Index for EUR?

Options:
A.

EURIBOR

B.

EONIA

C.

EUREPO

D.

EURONIA

Expert Solution
Questions # 114:

How many GBP would you have to invest at 0.55% to be repaid GBP 2,000,000.00 (principal plus interest) in 90 days?

Options:
A.

GBP 1,997,253.78

B.

GBP 1,997,291.34

C.

GBP 1,997,287.67

D.

GBP 1,997,250.00

Expert Solution
Questions # 115:

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

Options:
A.

4.19%

B.

4.25%

C.

4.30%

D.

4.31%

Expert Solution
Questions # 116:

Which of the following statements is true concerning dealing and rollovers at non-current rates?

Options:
A.

When setting the rates for an FX swap to extend the maturity, the spot rate should be fixed immediately within the current spread

B.

Where the use of non-current rates may be necessary, they should only be entered into with the prior explicit permission of the quoting party’s senior management

C.

Dealing and rollovers at non-current rates are relatively common market practice and therefore should not be treated differently from any other transaction

D.

Dealing and rollovers at non-current rates are forbidden as they can help perpetrate fraud and tax evasion

Expert Solution
Questions # 117:

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

Options:
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

Expert Solution
Questions # 118:

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

Options:
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

Expert Solution
Questions # 119:

What is the amount of the principal plus interest due at maturity on a 1-month (32-day) deposit of USD 50,000,000.00 placed at 0.37%?

Options:
A.

EUR 50,015,416.67

B.

EUR 50,016,219.18

C.

EUR 50,016,444.44

D.

EUR 50,016,958.33

Expert Solution
Questions # 120:

You have a short position of 50 EURODOLLAR futures contracts. You can hedge your position by:

Options:
A.

Selling a FRA for a similar notional amount

B.

Buying a FRA for a similar notional amount

C.

Selling a call option on the contract

D.

Selling a put option on the contract

Expert Solution
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