Exam 1: ACI Dealing Certificate-Part A

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%. How would you hedge the swap using FRAs? How to hedge an IRS with a strip of FRAs?

(Multiple Choice)

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Question 161

3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?

(Multiple Choice)

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Question 162

To curb attempted fraud, banks should:

(Multiple Choice)

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Question 163

The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75-80%. As collateral, you are offered EUR25 million nominal of the 5.5% OAT April 2006, which is worth EUR 28,137,500. If you impose an initial margin of 1%, the Repurchase Price is:

(Multiple Choice)

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Question 164

If I say that I have "bought and sold" EUR/USD in an FX swap, what have I done?

(Multiple Choice)

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Question 165

If you sell USD 3-month forward to a client against EUR, what should you do to hedge your position?

(Multiple Choice)

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Question 166

The market is quoting: 1-month (31-day) USD. 1.75% 3-month (91-day) USD. 2.05% What is the 1x3 rate in USD?

(Multiple Choice)

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Question 167

Spot cable is quoted at 1.6048-53 in the brokers and you quote a customer 1.6050-55 in USD 3 million. If they sell USD to you, how much GBP will you be short of?

(Multiple Choice)

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Question 168

You have received a gift from a good friend who also happens to be your USD/YEN broker. Under such circumstances, the Model Code recommends that you should:

(Multiple Choice)

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Question 169

Gambling or betting amongst market participants has obvious dangers and:

(Multiple Choice)

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Question 170

You have done the following deals in spot USD/JPY: Sold USD 5.0 million at 130.60 Bought USD 3.5 million at 130.20 Bought USD 2.0 million at 130.50 Sold USD 2.0 million at 130.55 What is your net position and average rate?

(Multiple Choice)

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Question 171

If EUR/USD is quoted to you as 1.1050-53, does this price represent?

(Multiple Choice)

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Question 172

What usually happens to the collateral in a tri-party repo?

(Multiple Choice)

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Question 173

A CD with a face value of USD50 million and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

(Multiple Choice)

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Question 174

Where repos or securities lending transactions are entered into, the Model Code recommends:

(Multiple Choice)

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Question 175

A broker offers a dealer an incentive in the form of a reduction to the agreed schedule of brokerage between the firms.

(Multiple Choice)

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Question 176

What type of institution is the typical issuer of bank bills?

(Multiple Choice)

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Question 177

Which of the following is not in the Model Code?

(Multiple Choice)

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Question 178

3-month EUR/USD FX swaps are quoted to you at 15/19. If the "points are in your favour", what have you done?

(Multiple Choice)

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Question 179

How long does the Model Code recommend that tape recordings of dealers/brokers should be kept?

(Multiple Choice)

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Question 180

Showing 161 - 180 of 222

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%. How would you hedge the swap using FRAs? How to hedge an IRS with a strip of FRAs?

3-month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (which are higher) are unchanged. What would you expect the 3-month forward USD/CHF rate to be?

To curb attempted fraud, banks should:

The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75-80%. As collateral, you are offered EUR25 million nominal of the 5.5% OAT April 2006, which is worth EUR 28,137,500. If you impose an initial margin of 1%, the Repurchase Price is:

If I say that I have "bought and sold" EUR/USD in an FX swap, what have I done?

If you sell USD 3-month forward to a client against EUR, what should you do to hedge your position?

The market is quoting: 1-month (31-day) USD. 1.75% 3-month (91-day) USD. 2.05% What is the 1x3 rate in USD?

Spot cable is quoted at 1.6048-53 in the brokers and you quote a customer 1.6050-55 in USD 3 million. If they sell USD to you, how much GBP will you be short of?

You have received a gift from a good friend who also happens to be your USD/YEN broker. Under such circumstances, the Model Code recommends that you should:

Gambling or betting amongst market participants has obvious dangers and:

You have done the following deals in spot USD/JPY: Sold USD 5.0 million at 130.60 Bought USD 3.5 million at 130.20 Bought USD 2.0 million at 130.50 Sold USD 2.0 million at 130.55 What is your net position and average rate?

If EUR/USD is quoted to you as 1.1050-53, does this price represent?

What usually happens to the collateral in a tri-party repo?

A CD with a face value of USD50 million and a coupon of 4.50% was issued at par for 90 days and is now trading at 4.50% with 30 days remaining to maturity. What has been the capital gain or loss since issue?

Where repos or securities lending transactions are entered into, the Model Code recommends:

A broker offers a dealer an incentive in the form of a reduction to the agreed schedule of brokerage between the firms.

What type of institution is the typical issuer of bank bills?

Which of the following is not in the Model Code?

3-month EUR/USD FX swaps are quoted to you at 15/19. If the "points are in your favour", what have you done?

How long does the Model Code recommend that tape recordings of dealers/brokers should be kept?

ACI Dealing Certificate-Part B

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