What is the amount of the principal plus interest due at maturity on a 1 month (32 day) deposit of USD50,000,00 ...


Which of the following currencies is quoted on an ACT/360 basis in the money market.


Today’s spot value date is the 30th of June. What is the maturity date of a 2 month EUR deposit dealtoday. A ...


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. ...


From the following GBP deposit rates:1M (30 day) GBP deposits 0.45%2M (60 day) GBP deposits 0.50%3M (91 day) G ...


What is EONIA.


Which of the following is not a negotiable instrument.


Which of the following is a Eurocurrency deposit.


What is the maximum maturity of an unsecured USCP.


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


What are the primary reasons for taking an initial margin in a classic repo.


What happens when a coupon is paid on bond collateral during the term of a classic repo.


A CD with a face value of EUR 10,000,000.00 and a coupon of 3% was issued at par for 182 days and isnow trading a ...


You have taken 3 month (92 days) deposits of CAD 12,000,000.00 at 1.10% and CAD 6,000,000.00 at1.04%. Minutes la ...


A 7% CD was issued at par, which you now purchase at 6.75%. You would expect to pay:


The tom/next GC repo rate for German government bonds is quoted to you at 1.75 80%. As collateral, yousell EUR 1 ...


A bond is trading 50 basis points special for 1 week, while the 1 week GC repo rate is 3.25%. If you heldGBP 10, ...


If EUR/USD is quoted to you as 1.3050 53, does this price represent.


The seller of a EUR/RUB NDF could be:


Voice brokers in spot FX act as:


Are the forward points significantly affected by changes in the spot rate.


In GBP/CHF, you are quoted the following prices by four different banks. You are a buyer of CH


Which of the following CHF/JPY quotes that you have received is the best rate for you to buy CHF.


You have quoted spot USD/CHF at 0.9423 26. Your customer says “I take 5”. What does he mean.


A 12 month EUR/USD swap is quoted at 41/44. EUR interest rates are expected to fall, with USD interestrates rema ...


Assuming a flat yield curve in both currencies, when quoting a 1 to 2 month forward FX time option pricein a c ...


Clients of a voice broker quote EUR/USD at 1.3556 61, 1.3559 62, 1.3557 63 and 1.3555 59.What will be the br ...


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


As far as fineness and weight are concerned, what are the London Bullion Market Association (LBMA)requirements fo ...


If spot AUD/USD is quoted to you as 1.0420 25 and 1 month forward AUD/USD is quoted to you as 28/23,at what rat ...


The mid rate for USD/CHF is 0.9300 and the mid rate for NZD/USD is 0.8560. What is the mid rate forNZD/CHF. ...


You quote a customer a spot cable 1.6050 55 in USD 3,000,000.00. If they sell USD to you, how muchGBP will you b ...


BACD434CCAFA8D24B56238B9You are quoted the following market rates:spot USD/SEK 6.38501M (30 day) USD 0.40%1M (30 ...


You are quoted the following market rates:Spot GBP/USD 1.55259M (272 day) GBP 0.81%9M (272 day) USD 0.55%What a ...


You quote a customer spot AUD/USD at 1.0350 55. The T/N swap is quoted to you at 3/2. The customerasks to buy US ...


Which of the following is true about interest rate swaps (IRS):


Which of the following is true.


EURODOLLAR futures are:


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


If a dealer has a 6 month USD asset and a 3 month USD liability, how could he hedge his balance sheetexposure i ...


What is the Overnight Index for EUR.


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 fixe ...


Basis risk on a futures contract is:


Lending for 3 months and borrowing for 6 months creates a 3x6 forward forward deposit. The cost of thatdeposit i ...


A corporate wishing to hedge the interest rate risk on its floating rate borrowing would:


The market is quoting:6 month (182 day) CAD 1.25% 12 month (366 day) CAD 1.55%What is the 6x12 rate in CAD. ...


The seller of a put option has:


The exercise price in an option contract is:


An ‘at the money’ option has:


The vega of an option is:


An option is:


A put option is ‘out of the money’ if:


Which of the following transactions would have the effect of lengthening the average duration of assets inthe ban ...


What is a ‘duration gap’.


Which statement about modern matched maturity transfer pricing in banks is correct.


Supervisors would generally consider interest rate risk exposure in the banking book excessive beginningat what l ...


Which one of the following statements is incorrect. Hedge accounting of an existing position no longerapplies w ...


Which of the following is a function of asset and liability management (ALM).


Which of the following statements is correct.


Which one of the following statements about interest rate movements is true.


Under Basel rules, what is the meaning of EEPE.


The major risk to the effectiveness of netting is:


Which of the following methods is a means of credit risk mitigation.


Which of the following scenarios offer an example of wrong way risk.


Which of the following is typical of liquid assets held by banks under prudential requirements.


What is the correct interpretation of a EUR 2,000,000.00 overnight VaR figure with a 97% confidencelevel.


Hybex Electrics is a highly rated company with a considerable amount of fixed rate liabilities and would liketo i ...


Which one of the following statements correctly describes the increased capital ratios that will come intoeffect ...


Responsibility for the activities of all personnel engaged in dealing (both dealers and support staff) for bothpr ...


Which Greek letter is used to describe the ratio of change in the option price compared with change in theprice o ...


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


BACD434CCAFA8D24B56238B9Which of the following statements is true.


A broker offers a dealer a financial incentive in the form of a price reduction to the previously agreedbrokerage ...


What ought to be done in the event a trade erroneously occurs at an off market rate.


How long does the Model Code recommend that tapes and other records of dealers/brokers be kept.


What is the meaning of “under reference” in the terminology of trading.


You request use of funds from your agent bank for 1 day on an amount of EUR 100,000,000.00, EONIAwas 0.812% and t ...


If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, thecorrect ...


How frequently should business contingency procedures be tested and updated.


Which of the following does the Model Code mention with regards to recording telephone conversations.


Regarding access to production systems, which of the following is incorrect.


Which one of the following statements is true.


When do bank participants have a duty to make absolutely clear whether the prices they are quoting arefirm or mer ...


The use of standard settlement instructions (SSI’s) is strongly encouraged because:


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


A bank that has quoted a firm price is obliged to deal:


Confirmations of non prime brokerage deals using CLS should be exchanged:


Your agent bank accepts your back valuation request for 1 day on an amount of EUR 50,000,000.00.EONIA is 0.375% ...


A 3 month (91 day) deposit of AUD 25,000,000.00 is made at 3.25%. At maturity, it is rolled over threetimes at ...


Which of the following rates represents the highest investment yield in the Euromarket.


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


Today’s spot value date is Friday 27th February. What is normally the 1 month maturity date. Assume nobank h ...


The Market Segmentation hypothesis suggests that the yield curve bends at some point along its lengthbecause:


Which of the following is always a secured instrument.


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


Which type of repo is the most risky for the buyer.


You have taken 3 month deposits of EUR 10,000,000.00 at 0.60%, EUR 5,000,000.00 at 0.40% and EUR5,000,000.00 at ...


A 30 day 4% CD with a face value of GBP 20,000,000.00 is trading in the secondary market with 20 daysremaining t ...


The spot/week repo rate for the 4.25% OAT 2015 is quoted to you at 2.35 38%. You buy bonds with amarket value of ...


The two week repo rate for the 5.25% Bund 2014 is quoted to you at 3.33 38%. You agree to reverse inbonds worth ...


Clients of a voice broker quote EUR/GBP at 0.8345 50, 0.8346 51, 0.8348 53 and 0.8349 53. What will bethe br ...


How would you compute the bid side of the forward/forward FX swap points.


What is the ISO code for the Argentine peso.


Automated trading systems for interbank spot FX display the best prices entered into the systems by usersand:


What is the ISO code for silver.


What is the ISO code for palladium.


Spot EUR/USD is 1.3050 53 and EUR interest rates are lower than USD interest rates. Would you expectthe forward ...


The forward points are calculated using:


If you are trading spot on an ATS (Automated Trading System) and see a price for EUR/USD of1.3050 53. If you hit ...


month EUR/USD FX swaps are quoted to you at 8/12. If the “points are in your favor”, what have youdone. ...


If spot GBP/CHF is quoted 1.4275 80 and the 3 month forward outright is 1.4254 61, what are the forwardpoints. ...


Your are quoted the following rates:Spot CHF/JPY105.12 22 3M CHF/JPY 3.5/4.5At what rate can you buy 3 month ou ...


EUR/USD is 1.3080 83 and EUR/CHF is 1.2160 63. What price would you quote to a customer whowishes to sell CHF a ...


If spot NZD/CHF is quoted to you as 0.7406 09. How many NZD would you receive in exchange for CHF5,000,000.00 if ...


You quote the following rates to a customer:Spot GBP/CHF 1.4535 456MGBP/CHF swap 46/41At what rate do you sell G ...


You are paying 5% per annum paid semi annually and receiving 6 month LIBOR on a USD 10,000,000.00interest rate ...


You sold a JPY 500,000,000 1x12 FRA at 0.35%. The settlement rate is 11 month (334 day) JPY LIBOR,which is fixe ...


A Eurodollar futures price of 99.685 implies:


In the international market, a FRA in USD is usually settled with reference to:


A bank borrowing USD for 12 months and lending them for 6 months creates:


A futures clearing house is:


An Overnight Indexed Swap (OIS) is:


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


Today, you sold 10 December EURODOLLAR futures contracts at 99.50. The closing price is fixed by theexchange at 9 ...


What is a short straddle option strategy.


What is the probability of an ‘at the money’ option being exercised.


What is a short strangle option strategy.


A euro zone based bank that is asset sensitive to market interest rate changes might reduce interest raterisk b ...


Which of the following statements about leverage ratios under Basel III is correct.


Complete the following sentence. If a bank has an asset repricing in 6 months funded by a liability repricedin 3 ...


The Liquidity Coverage Ratio (LCR) in Basel III:


What is interest rate immunization in the context of bank gap management.


The weighted average duration of liabilities can be increased by:


Prudential regulation of banking book liquidity risk is dealt with by the Basel Committee (Basel II / Basel III)i ...


VaR increases with:


Under Basel Rules, the Basic Indicator Approach is a regulatory framework for:


Under Basel rules, expected credit loss is a function of which of the following sets of parameters:


Under Basel rules the risk weight for claims on unrated sovereigns and their cennl banks in thestandardized appro ...


Under Basel rules the meaning of CCF is:


What is meant by “turn of the month”.


In order to give a price in EUR/USD, the broker must:


In interbank trading, if a dealer is calling “off” at the same time as the broker is hitting a price:


A dealer has been invited by a broker to go to an exclusive club for the third time in a week. He should:


What does the Model Code recommend regarding “entertainment and gifts”.


Which one of the following is a major objective of ACI The Financial Markets Association.


Which of the following is required for institutions acting as prime brokers.


When a deal is done via a broker:


Bank XYZ calls you for a quote in EUR/USD for EUR 50,000,000.00. If you decide to quote, which of thefollowing is ...


What happens if an instruction remains unmatched and/or unsettled through CLS Bank.


What recommendation does the Model Code make to banks accepting a stop loss order.


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


Whose compliance rules, regulations and best practices should be followed in FX electronic trading.


You quote a price to a broker. It is hit by another bank, but you are not informed until some time afterwardthat ...


For which of the following might an MT370 be used.


What steps will the CFP of the ACI probably not undertake after having been formally notified by one of thepartie ...


Experience has shown that recourse to taped telephone conversations proves invaluable to the speedy resolution of ...


Which of the following correctly states the Model Code’s recommendations regarding electronic tradingand brokin ...


A US security yields 7% on an annually compounded bond basis. What is the equivalent annuallycompoundedmoney mar ...


Today’s spot value date is the 29th of February. What is the maturity date of a 4 month USD deposit dealtoday. ...


From the following AUD rates:3M AUD (91 day) deposits 2.35%3x6 AUD (90 day) FRA 2.55%Calculate the 6 month imp ...


Which is the day count/annual basis convention for SGD money market deposits.


A 6 month (182 day) investment of CAD 15,500,000.00 yields a return of CAD 100,000.00. What is therate of retur ...


Which of the following are specifically quoted in terms of a yield to maturity.


Who takes the counterparty risk on the seller in a to party repo.


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


In which type of repo is “double dipping” a risk.


BACD434CCAFA8D24B56238B9You buy a 30 day 4% CD with a face value of GBP 20,000,000.00 at par when it is issued. ...


What are the secondary market proceeds of a CD with a face value of EUR 5,000,000.00 and a coupon of3% that was i ...


The spot/next repo rate for the 5% Bund 2018 is quoted to you at 1.75 80%. You sell bonds with a marketvalue of ...


The one month (31 day) GC repo rate for French government bonds is quoted to you at 3.75 80%. Ascollateral, y ...


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


What is the ISO code for the currency of China.


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


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


What is an FX swap from spot.


Which of the following currency risks could only be hedged by a non deliverable forward (NDF).


A 6 month SEK/NOK Swap is quoted 40/50. Spot is 1.1145. Which of the following statements is correct.


For which country’s currency is ZAR the ISO code.


You are quoted the following rates:Spot GBP/USD 1.5295 00Spot USD/CHF 0.9320 236M GBP/USD swap 16/126M USD/CHF ...


You are quoted spot USD/NOK 5.7220 28 and USD/SEK 6.3850 58, at what price can you buy NOKagainst SEK.


You are quoted the following market rates:Spot EUR/USD 1.31503M (92 day) EUR 0.20%3M (92 day) USD 0.44% What is ...


You are quoted the following market rates:Spot AUD/CAD 1.060012M (360 day) AUD 3.40%12M (360 day) CAD 1.55%What ...


You are quoted the following rates:Spot GBP/CHF 1.4535 453M GBP/CHF swap 22/19At what rate can you sell GBP agai ...


An interest rate swap (IRS) is:


An important reason for trading a futures contract rather than an FRA is:


Selling a FRA has the same interest rate exposure as:


What is the purpose of an initial margin on a futures exchange.


What is the Overnight Index for USD.


A forward forward lender has an exposure to the risk of:


What is the Overnight Index for GBP.


BACD434CCAFA8D24B56238B9An option premium is normally a positive function of:


The gamma of an option is:


The seller of a call option has:


How would you delta hedge an ‘at the money’ long call option.


An option contract that gives the buyer the right to exercise the option at several distinct points during itslif ...


When considering interest rate risk in the banking book, retail demand deposits without fixed contractualmaturity ...


If the duration gap is zero, how will a small parallel shift in interest rates affect the market value of thebank ...


Which of the following statements is correct regarding duration.


Using reprising gap analysis, a bank’s balance sheet is considered liability sensitive to market interest rate ...


Which of the following statements about the Liquidity Coverage Ratio is correct.


Which one of the following statements about mark to model valuation is correct.


A closed position in a particular foreign currency exists:


Which of the following are all goals of the originator of securitized assets.


Which of the following risks are considered market risks.


Under Basel III rules the meaning of RSF is:


Under Basel rules the risk weight for MA rated claims on corporate in the standardized approach


What is the meaning of CCP within the Basel framework.


At the end of the day, you are short CHF 3,500,000.00 against SEK at 6.9275. You are asked to revalueyour positio ...


From 2019 on the total capital requirement for banks under Basel III will be defined as:


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


What does the Model Code recommend in respect of prices and orders made on electronic tradingplatforms.


Which of the following statements best describes the conditions under which a prime broker may accept atrade give ...


Claims should be communicated in writing via e mail or preferably by authenticated SWIFT. Whatinformation should ...


You and a dealer at another bank have a verbal bilateral reciprocal arrangement to quote each other twowayprices. ...


What does the Model Code say about omitting the “big figure” in voice communication.


Which of the following risks is best mitigated by CLS.


When differences in payment arise because of errors in the payment of funds:


The Model Code stipulates that you have a right to qualify your quotes in terms of amounts:


As regards controls, which of the following best practices for counterparty identification is incorrect.


What does the Model Code say concerning repos and stock lending.


What should be done when a voice broker hits a dealer’s price as “done” at the very instant the dealer call ...


Which of the following does the Model Code not recommend to prevent technical errors by etradingdevices.


In trade confirmation, which one of the following statements about “matching” is correct.


If several banks hit a broker simultaneously for an amount greater than the amount for which the price wasshown: ...


According the Model Code, a principal, whose name has been rejected, feeling that the broker may haveactually quo ...


What kind of information should dealers and brokers take care when relaying.


Which of the following is true regarding the consummation of a deal.


Which of the following dealing strategies involves the placing of orders with very short quote lives into amarket ...


A 3 month (90 day) NZD deposit is 2.75% and 6 month (180 day) NZD deposit is 3.00%. What is the 3x6NZD deposi ...


What is the name of the reference against which most USD and JPY deposits and loans are fixed inLondon.


You borrow GBP 2,500,000.00 at 0.625% for 165 days. How much do you repay including interest.


The columns below list short term cash rates on 3rd April and 3rd F1ay 3rd April 3rd MayDescribe the shape of th ...


day USCP is quoted at a rate of discount of 1.75%. What is its true yield.


You have quoted your customer the following CAD deposit rates:1M 1.00 05%2M 1.06 11%3M 1.13 18%The customer sa ...


Which of the following may pay a return as a mix of income and capital/gain loss.


Which of the following is not transferable.


What happens when the issuer of a bond being used as collateral in a classic repo fails to pay a coupon onthe bon ...


What is the Repurchase Price of a classic repo.


A CD with a face value of USD 50,000,000.00 and a coupon of 4.50% was issued at par for 90 days and isnow trading ...


You buy a 181 day 2.75% CD with a face value of USD 1,500,000.00 at par when it is issued. You sell it inthe sec ...


The Interest Rate Parity Theorem should work because, when one sells a low interest rate currency toinvest in a h ...


Which one of the following bullion coins has a 999.9/1000 gold purity (.9999 fineness).


What is the Gold Offered Forward Rate (GOFO).


For which country’s currency is SEK the ISO code.


month USD/CHF is quoted at 12/10. Interest rates in Switzerland are reduced but USD rates (which arehigher) are ...


What is the ISO code for the Indian rupee.


Cable is quoted at 1.5575 80 and you say “5 yours!” to the broker. What have you done.


What is the result of combining a 1 month buy and sell FX swap with a 2 month sell and buy FX swap.


USD/CHF is quoted to you at 0.9290 93 and GBP/USD at 1.5320 30. At what rate could you buy GBP andsell CHF. ...


Your GBP/CHF rate is 1.3710 15. How many GBP would your customer have to give you to buy CHF10,000,000.00.


Using the following rates:Spot GBP/CHF 1.4235 55Spot CHF/SEK 6.8815 453M GBP/SEK swap 140/150What is the price ...


BACD434CCAFA8D24B56238B9If GBP/USD is quoted to you at 1.6120 30, how much GBP would you receive if you sold USD ...


Today is Monday, 8th December. You sell a 9x12 USD FRA for value Thursday, 10th September nextyear. On what date ...


An FRA is:


You are paying 1,00% per annum paid semi annually and receiving 6 month LIBOR on a USD10,000,000.00 interest ra ...


How would you delta hedge a deeply “in the money” short put option.


An interest rate guarantee (IRG) is:


The Liquidity Coverage Ratio imposed by Basel III requires a bank:


Does the slope of the interest yield curve typically have a substantial impact on a bank’s net interestmargin. ...


A purchased 3X6 FRA should be reported in a gap report as


What would be the strategy for a bank if it is unable to speculate on interest rates and/or unable to absorbmarke ...


Net funding requirements in liquidity management are determined by means of:


Which one of the following statements is incorrect under Basel III.


Which one of the following statements regarding the variance covariance method for calculating value atriskis t ...


Which one of the following formulae is correct.


Under new Basel rules, what is the meaning of CVA.


Which of the following does not represent an operational risk as defined by Basel rules.


You are a sales person in a bank and are about to sell a structured note to a non professional customer.Before f ...


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


The Model Code’s correct recommendation regarding electronic trading states:


When can a broker consider a deal to be done.


A dealer in the spot foreign exchange market has to assume that a price given to a voice broker is onlyvalid:


As to the Charter of ACI The Financial Markets Association, what do members not pledge.


Which of the following statements reflects the position of the Model Code on gambling or betting amongstmarket pa ...


The popularity of FX trading via Internet platforms has serious implications for the applicability of traditiona ...


Where voicemail equipment is used for the reporting and recording of off premises transactions, voice mailshould ...


In a plain vanilla interest rate swap, the “fixed rate payer”:


All prices quoted by brokers should be taken to be:


What should a broker do if his quoted price is hit simultaneously by several dealers for a total amountgreater th ...


Under the Model Code, if a broker shouts “done” or “mine” at the very moment a dealer shouts “off”: ...


In order to be introduced in a controlled manner, which areas should be involved before a new product orbusiness ...


Which of the following currencies is quoted on an ACT/365 basis for the calculation of interest on interbankdepos ...


A negative yield curve is one in which:


What is the day count/annual basis convention for JPY money market deposits.


What rates should a panel bank contribute to the EURIBOR fixings.


EURIBOR is the:


A USD deposit traded in London between two German banks is cleared:


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


What is the Purchase Price of a repo.


A CD with a face value of USD 250,000,000.00 was issued at par with a coupon of 5% for 91 days.You buy it in the ...


You quote spot EUR/USD at 1.3023 26 in 5 to another bank. He says, “Take 5, could do 8”.How much are you obl ...


What is the value date of a 1 month outright forward FX transaction dealt today, if today’s spot date isMonday ...


When would an exporter commonly use an NDF.


What is the value date of a 6 month outright forward FX transaction dealt today, if today’s spot date isMonday ...


How many Yen would you pay to buy 1 ounce of gold if you were quoted the following. XAU/USD 1575.25 75USD/JPY 9 ...


If GBP/USD is 1.5350 53 and USD/JPY is 97.50 53, what is GBP/JPY.


The 180 day CAD/CHF rate is bid 62 and the 90 day CAD/CHF rate is bid 29. What is the bid rate for 120days, ass ...


You are quoted the following rates: Spot cable 1.5340 430/N cable swap 0.14/0.11T/N cable swap 0.16/0.13S/N cabl ...


The market is quoting:1 month (30 day) GBP 0.47%7 month (213 day) GBP 0.74%What is the 1x7 rate in GBP.


Today is the fixing date for a 6x9 FRA that you sold at 2.55%. BBA LIBOR fixes at 2.7175%.Which of the following ...


If you lend for 3 months and borrow for 6 months, you may be said to:


What is the purpose of a short straddle option strategy.


The delta of an ‘at the money’ long put option is:


Which of the following both provide credit enhancement to a true sale securitization.


Which of the following situations would be most likely to result in a negative mark to market for a bankborrowi ...


The primary issue for insuring prudent liquidity management in accord with the guidance provided by theBasel Comm ...


Which of the following statements about Credit Default Swaps (CDS) is correct.


Which of the following is not the responsibility of the asset and liability committee (ALCO).


Which of the following is part of the typical scope of Asset Liability Management (ALM).


All other things being equal, if a bank borrows short and lends long what is the effect on the liquidity risk oft ...


A transaction that entails market price risks may be entered into in the absence of a market price risklimit... ...


The risk associated with a stock or a bond that is not correlated with events in the market is known as:


What is the correct interpretation of a EUR 5,000,000.00 one week VaR figure with a 99% confidencelevel.


Which one of the formulae below is correct.


Which of the following statements about requirements for limit setting is correct.


You are the buyer of protection in a credit default swap. All other things being equal your counterpartycredit ri ...


In the event that standard settlement instructions are provided by a third party, full authentication andauthoriz ...


Which of the following statements about operational risk awareness is correct.


What is the expression used to describe a genuine error (wrong amount, wrong side, wrong rate) made bya dealer in ...


The Model Code recommends that standard terms and conditions be used in legal documents. Which oneof the followin ...


For which one of the following disputes is the Chairman and members of the ACI’s CFP ready to assistthrough the ...


Which one of the following statements about claims is true.


What should be done if a broker fails to conclude a transaction at the quoted price and the dealer has toaccept a ...


Which of the following is the best description of a “broken trade”.


What is the policy of the Model Code on drugs, alcohol and other substance abuse in the dealing room.


Which of the following statements is true. The repo legal agreement between the two parties concernedshould:


Principals who enter into an interest rate swap with the intention of shortly afterwards assigning ortransferring ...


A bank quotes 3 month EUR deposits at 0.45% ¡ª 0.55% to its broker. The broker lifts the bank’s offer at0.55 ...


Where dealing for personal account is allowed, what safeguards to prevent abuse or insider dealing are stated by ...


Principals are allowed to:


What needs to be done in the event that a trade is amended by one or both parties.


Management has a specific responsibility to issue guidelines to staff on transacting after hours and offpremises ...


You have bought a 93 day US Treasury bill at 5.63%. What is the true yield.


When is interest conventionally due on a 3 year interbank EUR deposit.


The interest earned on a USD 5,000,000.oo money market deposit for 184 days is USD 12,500.00. Whatwas the interes ...


The maturity of a straight 3 months deposit falls on Saturday, which happens to be the last day of themonth. Wha ...


What is the maximum maturity of a US Treasury bill.


What is the major difference between a CD and a deposit.


A customer gives you GBP 25,000,000.00 at 0.625% same day for 7 days.Through a broker, you place the funds with a ...


How is an outright forward FX transaction quoted.


How much is one big figure worth per million of base currency if EUR/GBP is 0.8990.


A customer would hedge a currency exposure with a forward FX time option if:


If you sell forward USD to a client against EUR, what is the first thing you should do to cover your exposureto e ...


You are quoted the following market rates:Spot EUR/USD 1.3097 000/N EUR/USD swap 0.08/0.11TIN EUR/USD swap 0.29/ ...


You are quoted the following rates:Spot EUR/NOK 7.5250 60O/N EUR/NOK swap 3.10/3.20T/N EUR/NOK swap 3.12/3.22S/N ...


The market is quoting:3 month (90 day) NZD 2.55%6 month (182 day) NZD 2.75%What is the 3x6 rate in NZD.


You are short of 6 December EURODOLLAR futures contracts at 99.50. Yesterday, the closing price was99.35. Today ...


If you funded your fixed income investment portfolio with short term deposits, how would you hedge yourinterest ...


You have borrowed at 3 month LIBOR+50. LIBOR for the loan will be re fixed in exactly one month. Themarket is q ...


The buyer of a cap:


The buyer of a currency put option has:


The rho of an option is:


Which of the following statements regarding economic capital is correct.


Who typically communicates the bank’s asset and liability management policy internally.


You have prepared the following economic capital table for the next ALCO meeting:For which of the following risks ...


BACD434CCAFA8D24B56238B9All other things being equal the interest rate risk of a fixed coupon bond is:


What is settlement risk in FX.


Taking collateral to hedge the credit risk on a counterparty means that you have:


You want to hedge your deposit against falling interest rates. Which of the alternatives below areappropriate for ...


You are the fixed rate payer in a plain vanilla interest rate swap. If your counterparty defaults, yourexposure ...


Extended trading hours and off premises dealing can involve additional hazards, the avoidance of whichrequires c ...


What should be done when a voice broker calls “off” at the very instant the dealer hits the broker’s price ...


Where there are shared management responsibilities or where an investment or shareholding exists in abroker by a ...


Dealers are authorized to deal:


Which of the following statements about “standard settlement instructions” (SSI) is correct.


Which of the following is a Model Code good practice regarding the passing of names.


Three of the following non EU countries have unilaterally adopted the Euro. Which one has not.


Which of the following is not an officially published settlement or reference rate.


When a broker needs to switch a name this should be done:


Once a prime broker has matched and accepted a trade, separate confirmations must be exchangedbetween:


A fixed rate forward/forward non deliverable deposit/loan transaction, settled in cash with an agreed uponproces ...


Convert 8.25% quoted on a semi annually compounded money market basis for USD to the equivalentannually compoun ...


Today’s date is Thursday 12th December. What is the spot value date. Assume no bank holidays.


Which of the following pays a return in the form of a discount to face value.


Which of the following will tend to have the lowest yield.


Which of the following market participants would least likely be a user of repo.


When quoting the exchange rate between the USD and AUDI which is conventionally the base currency.


The buyer of a USD/ARS NDF could be:


A forward/forward FX swap:


If you have created a ‘synthetic asset’ by buying and selling a USD/CHF swap, what have you done.


If I say that I have “bought and sold” EUR/USD in an FX swap, what have I done.


If EUR/USD is 1.3025 28 and the 6 month swap is 15.50/17, what is the 6 month outright price.


If spot USD/HKD is 7.7600 and USD/SGD is 1.2350, what is SGD/HKD.


If USD/JPY is quoted to you as 98.10 15 and USD/CHF as 0.9294 99, what is the rate at which you canbuy CHF agai ...


The market is quoting:1 month (31 day) NOK 1.75¡ãk3 month (91 day) NOK 2.05%What is the 1x3 rate in NOK. ...


The major difference between FRAs and futures is that FRAs are:


A short USD put/JPY call option:


What is a long strangle option strategy.


If the yield curve is upward sloping, a bank would not profit from:


Issues relating to the bank’s liquidity management are commonly discussed in:


Which of the following transactions would have the effect of shortening the average duration of liabilities inthe ...


What is Funds Transfer Pricing in the ALM process.


Which of the following statements about requirements for dealing with limit violations is correct.


Under Basel Securitization rules the highest potential risk weight is:


You are entering into a swap as a fixed rate receiver with Party A and into an offsetting position with party


Under Basel rules, what is the meaning of RWA.


What does the term “mine” mean when given in response to an FX spot quotation.


Assume the following scenario:Bank A bids for EUR 5,000,000.00 at 1.3592.Bank B offers EUR 10,000,000.00 at 1.359 ...


As to general risk management principles, the Model Code mentions that the organizationalstructureshould ensure i ...


What is the documentation in which the parties agree to the terms that will govern future transactions.


What are de minimis claims.


What is the name of a swap in which the counterparties sell currencies to each other with a concomitantagreement ...


BACD434CCAFA8D24B56238B9Under what circumstances are banks allowed to “park” deals or positions with a counte ...


Any breaches in confidentiality should be:


An FX forward outright has been dealt for a value date which is subsequently declared to be a bankholiday. Accord ...


Under what conditions can an FX broker act as a position taker.


A prime broker may not reject a trade given up if:


Is gambling or betting between market participants allowed.


What is a “normal” shaped curve.


If you take an 18 month USD deposit, when is interest payable.


Which of the following will tend to have the higher yield.


Mark to market’ in a repo means:


How can material divergences between the value of cash and collateral be managed in a documented sell/buy back. ...


Four banks provide you with quotes in CHF/SEK. Which is the best price for you to buy SEK.


After having quoted a rate of 1.5005 10, the quoting bank says, “Your risk”. This means:


What is the London Gold Price Fix (London Gold Fixing).


The outright forward FX rate is not a function of which of the following.


The Interest Rate Parity Theorem states that:


Forward points represent:


You have quoted a Swiss customer spot USD/CHF as 0.9273 78, but he asks you to quote it as CHF/US


BACD434CCAFA8D24B56238B9How is a USD Overnight Indexed Swap (OIS) settled.


An ‘at the money’ call option:


The seller of a floor:


Which of the following statements about the Net Stable Funding Ratio is correct.


A bank expects interest rates to fall with a parallel downward shift in the yield curve. What action shouldthe ba ...


What type of risk would describe the failure of a back office to make adequate margin calls on repopositions. ...


Which one of the following statements concerning covenants is incorrect.


Under Basel rules, what is the meaning of LGD.


What do you call a combination of a long (short) call option and short (long) put option with same facevalue, sam ...


When may a broker assume a deal is closed.


What is the recommended follow up procedure in case of a settlement discrepancy.


In dealing terminology, what does “my risk” refer to.


Which one of the following statements about “CLS rescinds” is correct.


The process of confirming trades is a function that can be performed by:


Your broker quotes you EUR/USD at 1.3425 28. You respond by saying “yours”. Which one of thefollowing statem ...


Which SWIFT message should be used to advise the netting position of a currency resulting from FX,NDF, options an ...


What does the Model Code advise regarding the taping of telephone conversations.


From the following CAD rates:1M (31 day) CAD deposit 0.95%1x2 CAD (30 day) FRA 1.21%2x3 CAD (31 day) FRA 2.01% ...


Using the following rates:3M (90 day) EUR deposit 0.25%6M (180 day) EUR deposit 0.50%What is the rate for a EUR ...


The two week repo rate for the 5.25% Bund 2011 is quoted to you at 3.33 38%. You agree to reverse inbonds worth ...


What is an outright forward FX transaction.


If a 12 month AUD/NZD swap is quoted 53/47, which of the following statements would you consider to becorrect. ...


You wish to sell a customer GBP/USD for value tomorrow. How can you hedge yourself.


You are quoted the following rates:Spot USD/JPY 97.10 153M USD/JPY swap 9/6Spot USD/CHF 0.9320 233M USD/CHF swa ...


If a dealer needs to hedge an over lent 3x6 position against 1MM dates for which the FRA is quoted 1.30 1.34% a ...


The delta of an ‘at the money’ long call option is:


A long collar is:


What is the purpose of the Liquidity Coverage Ratio.


Which of the following is a measure of a bank’s gross exposure to foreign exchange rate risk.


When constructing a gap report, how would a EUR 25,000,000.00 long position in 6x12 FRA becategorized.


What would happen to a bank’s net interest income if it ran a zero gap in an environment of decreasinginterest ...


What is a hedge.


When is your settlement risk greatest on a spot FX deal.


Which of the following is a characteristic of all liquid assets under Basel III.


Today, you sell GBP 5,000,000.00 to a customer against JPY for spot value. Tomorrow, the customerdefaults. What i ...


Which one of the following best describes expected shortfall/conditional value at risk at the 95% level.


For a bank to count funds as regulatory capital:


In FX trading a “third party beneficiary” is best described as:


If manual trade capture methods are used, when should deals be recorded in systems used for thispurpose.


Between which departments are clear and structured escalation procedures required for the managementof incorrect ...


A bank quotes a spot rate that is verifiably incorrect and deviates substantially from the prevailing marketrate. ...


In foreign exchange markets, the first currency in a currency pair is:


Which of the following statements is an incorrect statement in respect of Model Code recommendations concerning e ...


What are financial market professionals not explicitly required by the Model Code to clarify and agree to inwriti ...


When should confirmations be sent out.


In the unforeseen event that a particular maturity date is declared a public holiday, what is standard marketprac ...


What should a dealer say to express his commitment to putting an additional bid or offer at a current bid oroffer ...


If making a claim in respect of “use of funds”, payments should be settled within how many days.


Which of following terms is not used as an expression for dates other than regular dates/periods.


Which of the following statements with respect to trading and broking ethics through the use of technologyis the ...


The Model Code is clear on “position parking”. What does it say.


Which of the following statements about Eurodollar deposits is correct.


A CD can usually only be issued by what type of institution.


If the value of the collateral in a repo has fallen during the term of the transaction, who suffers the loss. ...


Which of the following functions does a to party repo agent not perform.


What is the ISO code for platinum.


If 6 month EUR/AUD is quoted at 129/132, which of the following statements is correct.


What criteria define a market maker.


You are quoted the following market rates:Spot EUR/USD 1.30106M (181 day) EUR 0.30%6M (181 day) USD 0.50%What i ...


You quote your customer EUR/USD 1.3070 73, However they need the rate quoted in EUR per US


A customer sells a 3 month Euro Swiss Franc (EUROSWISS) futures contract. Which of the following riskscould he b ...


A bank wants to use STIR futures for establishing a macro hedge for the asset portfolio. Which of thefollowing st ...


Which of the following statements about hedge accounting is not correct.


Which of the following statements does not explain why banks accept some amount of interest rate risk.


Under Basel rules the risk weight for AM rated claims on corporates in the standardized approach is:


A customer based in the UK exports automotive parts to the US. His main competitor is in France. Whattype of expo ...


If you took a short position in USD/JPY, how could the Fed “squeeze” you.


Under Basel III the Credit Value Adjustment will apply to:


With regard to operational risk awareness, which of the following best practices is incorrect.


In the deposit broker market, which one of the following is not a valid reason for the proposed borrower todeclin ...


ACI’s Committee for Professionalism will offer expert opinion in disputes between firms if:


The term “under reference” refers to:


When a stop loss/profit order is taken, the rate specified in the order:


What is one of the responsibilities of the Middle Office according to the Model Code.


Name switching is:


Deals transacted directly or via a broker prior to 5:00 am Sydney time on Monday morning:


Which of the following cannot produce a capital gain.


What is the maximum maturity of a London CD.


What is the primary function of GC repo, particularly very short term transactions.


Voice brokers in spot FX are remunerated with:


You are quoted the following market rates:Spot AUD/USD 1.0380 850/N AUD/USD swap 2.42/2.35TIN AUD/USD swap 0.82/ ...


You are quoted the following rates:Spot JPY/CHF 0.009520 256M JPY/CHF 10/7At what rate can you buy 6 month outr ...


How can options be used to synthesize a short position in the underlying commodity.


A payer’s 3 month USD LIBOR swap with a remaining term of five years must be reported as:


What is the principal risk identified by gap management reporting.


A Eurozone based bank that is liability sensitive to market interest rate changes might reduce interest rateris ...


A sold JUN 3 month STIR future should be reported in the gap report as of 22 May:


You have made a price by a Japanese bank in (SD 2,000,000.00 against JPY. They made you98.95 03 and you took the ...


To establish and maintain a short position in deliverable securities, you must:


What is the minimum basis on which a BCP should be updated and tested.


What does the Model Code recommend with regard to any give up agreement between a prime broker andan executing d ...


When initially negotiating an interest rate swap, a principal indicated his intention to assign it to a thirdpart ...


When an employee executes a personal trade in advance of a client’s or institution’s order to benefit fromthe ...


Dealers are allowed to trade for their own account only if:


What does the Model Code recommend regarding the practice of “name switching/substitution”.


If there is a need for assistance to help resolve a dispute over differences between a broker and a bank,the Mode ...


In spite of having agreed to a deal, dealers are not bound to its terms if it is “subject to documentation”.W ...


What recommendation does the Model Code make in cases of market disruption.


What are 1MM dates.


A 3 month (91 day) UK Treasury bill with a face value of GBP 50,000,000.00 is quoted at a yield of 4.25%.How mu ...


Which of the following are quoted in terms of a discount rate.


In case of a default on a repo by the seller:


On fixing date, the settlement payment of an NDF reflects the differential between the agreed forward rateand:


If EUR/USD is quoted to you as 1.3030 40 and GBP/USD as 1.5320 30, at what rate can you sell GBP andbuy EUR. ...


When performing a gap analysis, into which of the following time buckets should a 5 year floating rate notewith ...


Risk capital is intended to ensure that an institution can:


You have just sold USD 5,000,000.00 spot against JPY. What type of risk does not apply.


If the daily 90% confidence level VaR of a portfolio is correctly estimated to be USD 5,000.00, one wouldexpect t ...


Which of the following definitions of a nostro account is correct.


Under Basel rules, what is the meaning of IRB.


Which position below is NOT a component of common equity Tier 1 capital.


With reference to dealing periods, what does the term “short dates” refer to.


Which of the following statements is false. The repo legal agreement between the two parties concernedshould: ...


An option granted by the seller that gives the buyer the right to enter into an underlying interest rate swaptran ...


What rate should be used if the settlement date in a foreign exchange transaction is no longer a “good”date. ...


How many USD would you have to invest at 3.5% to be repaid USD125 million (principal plus interest) in30 days. ...


What is the day count/annual basis convention for euroyen deposits.


Which of the following are transferable instruments.


Which of the following is sometimes called two name paper.


What usually happens to the collateral in a tri party repo.


Which type of repo is the least risky for the buyer.


BACD434CCAFA8D24B56238B9The one month (31 day) GC repo rate for French government bonds is quoted to you at 3.7 ...


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


How much is a big figure worth per million of base currency it EUR/GBP is 0.6990.


What is the incentive for market making.


The torward points are calculated from:


If 6 month EUR/AUD is quoted at 29/32, which of the following statements is correct.


What is an FX swap.


The mid rate for USD/CHF is 1.3950 and the mid rate for AUD/USD is 0.7060. What is the midrate forCHF/AUD.


Click on the Exhibit Button to view the Formula Sheet, If GBP/USD is 1.5350 53 and USD/JPY is 106.50 53, what i ...


If spot GBP/CHF is quoted 2.3875 80 and the 3 month forward outright is 2.3660 70, what are the forwardpoints. ...


Your are quoted the following rates:spot CHF/JPY 60.12 223M CHF/JPY 25.5/22.5At what rate can you buy 3 month o ...


You are quoted the following market rates:Spot USD/JPY 123.651M (30 day) US


A forward forward loan creates an exposure to the risk of:


You have a USD loan that is priced at 3 month LIBOR+50. LIBOR for the loan will be re fixed in exactlyone month ...


You bought a USD 4,000000 6x9 FRA at 6.75%. The settlement rate is 3 month (90 day) BBA LIBOR,which is fixed at ...


The major difference between futures and OTC instruments like FRAs and interest rate swaps is thatfutures are:


The intrinsic value of a long call option:


What is the probability of an at the money option being exercised.


A dealer does the following deals in EUR/USD:buys EUR 1 m at 11020sells EUR 3 m at 1.1022buys EUR 2 m at 1.1002bu ...


Fraud is typically classified as:


What is the effect of netting.


What is a Vostro account.


For which of the following reasons is the extension of forward contracts at non current rates isdiscouraged:i. T ...


Confirmations must be sent out


Where the matter of dealing for personal account is concerned, the Model Code recommends that


To curb attempted fraud, banks should:


Written confirmation is a function that can be done by:


Which of following is not true.


Which of the following statements is true.


Click on the Exhibit Button to view the Formula Sheet. Bank A pays for EURO 5 m at 1.1592. Bank B offersEURO 10 m ...


When you are accepting a stop loss order, you must:


Brokers shall not reveal the identity of a counterparty unless:


Which of the following statements reflects the Model Code on gambling or betting amongst marketparticipants.


Where answer phone equipment is used for reporting and recording of off premises transactions, it shouldbe:


Gambling or betting amongst market participants has obvious dangers and:


Confirmations should be sent out by both counterparties through an efficient and secure means ofcommunication, pr ...


Payment and settlement instructions should be passed:


The Model Code rules that deals at non current rates:


You quote a price to a broker on EUR 100 million. Your price is hit for EUR 50 million. What does theModel Code s ...


You are quoting forward FX prices to a broker subject to finding a counterparly for a matching transaction.The Mo ...


Deliberately inputting incorrect big figures into an electronic dealing platform is:


You deal over the phone with a counterparty. The subsequent confirmation differs from the terms agreedverbally. W ...


A broker offers a dealer an incentive in the form of a reduction to the agreed schedule of brokeragebetween the f ...


It is now permissible in most markets for brokers to be owned by banks and other principals. Where thereis shared ...


If a dealer has any intention of assigning an interest rate swap to a third party soon after transacting thatswap ...


A dealer has indicated his intention of assigning an interest rate swap to a third party soon after transactingth ...


What does the Model Code say about netting.


The Model Code recommends that, in the case or complaints about transactions, management should:


If a broker refers to “the payer of 5 year euro at 4.12”, what is this party doing.


What is meant by “short dates”.


In all dealing conversations, the Model Code strongly recommends:


A 3 month (91 day) deposit of EUR25 million is made at 3.25%. At maturity, it is rolled over three times at3.55 ...


Click on the Exhibit Button to view the Formula Sheet. A 6 month (182 day) investment of CHF15.5 millionyields ...


Using the following rates:3M (90 day) eurodeposits3.50%6M (180 day) eurodeposits3.75%What is the rate for a dep ...


You have quoted your customer the following eurodollar deposit rates:1M 5.375 25% 2M 5.4375 3125%3M 5.5 375%Th ...


You buy a 181 day 2.75% CD with a face value of USD 1,500,000 at par when it is issued. You sell it in thesecond ...


When quoting the exchange rate between the EUR and AUDI which is conventionally the base currency.


Are the forward points materially affected by changes in the spot rate.


A 6 month SEK/NOK Swap is quoted 140/150. Spot is 0.9445. Which of the following statements iscorrect.


Spot cable is quoted at 1.6048 53 in the brokers and you quote a customer 1.6050 55 in USD 3 million, Ifthey se ...


If spot AUD/USD is quoted to you as 0.7406 09. How many AUD would you receive in exchange for USD5,000,000 if yo ...


If GSP/USD is quoted to you at 1.61 20 30, how much GSP would you receive if you sold USD 2000,000.


If EUR/USD is 1.1025 28 and the 6 month swap is 112.50/113, what is the 6 month outright price.


You quote the following rates to a customer spot GBP/CHF 2.2005 103M GBP/CHF swap 120/115At what rate do you sel ...


Today is Monday, 8th December. You sell a 9x12 FRA for value Thursday, 10th September next year. Onwhat date is t ...


Click on the Exhibit Button to view the Formula Sheet. You are short of 6 Dec euro dollar futures contractsat 98. ...


The premium on an option contract is:


The delta of an at the money long call option is:


You bought USD 5,000,000 against EUR at 1.1037 and 3,000,000 at 1.1052. If the EUR/USD rate is nowquoted 1.1015/1 ...


A disgruntled customer claims that he should not have to settle an FRA with you because it is really just awager. ...


Which of the following is not true.


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


Bank B’s price is shown by a broker to Bank A and is dealt by Bank


Under which circumstances are banks allowed to park positions with a counterparty. :


In a dispute between the dealer and a broker, the Model Code recommends that this should be referred inthe first ...


When a broker calls “off” at the very instant a dealer “hits” the broker’s price:


If a dealer has interest on one side, and the other side is dealt away, the broker should:


Bank XYZ calls you for a quote in EUR/USD for EURO 20 million. If you decide to quote to Bank XYZ:


The use of mobile phones within the dealing room is not considered good practice except


The organisational structure of market participants should ensure a strict segregation between front andback offi ...


The Chairman and members of the ACls Committee for Professionalism are ready to assist in resolvingdisputes throu ...


Where the Committee for Professionalism of the ACI has been notified of a breach of the letter or spirit ofthe Mo ...


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


Where internet trading facilities are established by a bank for a client, the conditions and controls shouldbe st ...


You and a dealer at another bank have an informal bilateral reciprocal arrangement to quote each othertwo way pr ...


Management policy on the use of mobile devices by trading sales and settlement staff should:


When dealing with a fund manager, who will allocate shares in a transaction to his unknown clients afterthe trans ...


What is the risk of dealing through an agent with an unknown principal.


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


When is interest conventionally due on a 3 year interbank eurodollar deposit.


From the following GBP deposit rates:1M (31 day) GBP deposits 3.15%2M (61 day) GBP deposits 3.25%3M (91 day) G ...


Which of the following are quoted in terms of a yield to maturity.


What is the buyers primary risk in a repo.


The two week repo rate br the 5.25% bund 2007 is quoted to you at 3.33 38%. You agree to reverse inbonds worth ...


BACD434CCAFA8D24B56238B9What is the ISO code for the Lebanon pound.


A dealer needs to buy USD against SG


You need to buy USD 5,000,000 against GBP and are quoted the following rates concurrently by twoseparate banks: 1 ...


Cable is quoted at 1.6075 80 and you say “5 yours!” to the broker. What have you done.


You are quoted spot NZD/USD 0.6821 26 and USD/CHF 1.4652 56 at what price can you buy CHFagainst NZD.


You have quoted a Swiss customer spot USD/CHF as 1.3710 15, but he asks you to quote it as CHF/US


You are quoted the following market rates:spot EUR/CHF 1.10056M (180 day) EUR 3.45%6M (180 day) CHF 1.25%What a ...


Using the following rates:spot GBP/CHF 2.3785 15spot CHF/SEK 5.5975 85 3M GBP/SEK swap 725/690What is the price ...


The market is quoting:1 month (31 day) US


A customer sells a LIFFE Euro Swiss futures contract. Which of the following risks could he be trying tohedge. ...


Purchasing a USD/JPY call option is equivalent to:


An option premium is a positive function of:


The delta of an option is:


What is the purpose of a long strangle option strategy.


If you buy GBP 2,000,000 against USD at 1.6020; GSP 1,000,000 at 1.6035 and GBP 3,000,000 at1.6028, what is the a ...


What is replacement cost a function of.


What is a master agreement intended to do.


The Model Code recommends that when banks accept a stop loss order


The Committee for Professionalism strongly recommends intra day oral deal checks to help reduce thenumber and si ...


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


Dealers should not conduct dealing activities outside the bank unless:


Banks have a fiduciary responsibility to ensure that clients have all necessary information to understandthe tran ...


When is a broker allowed to assume a deal is closed:


Which of the following is not in the Model Code.


Click on the Exhibit Button to view the Formula Sheet, If the value date of forward USD/JPY transactions isdeclar ...


Bank participants have a duty to make it clear that their prices are firm or merely indicative:


The extension of forward FX contracts at their historic rates is only allowed when:


You have received a gift from a good friend who also happens to be your USD/YEN broker. Under suchcircumstances, ...


Brokers should confirm all transactions:


Making interest rate swap transactions subject to agreement on documentation:


Where dealing through an intermediary with an unidentified principal, the Model Code recommends:


You hear from a client of good standing that a major market participant has taken major losses on itsproprietary ...


You hear from several counterparties that a major market participant has taken major losses on long USD/JPY posit ...


Which of the following would not constitute an event of market isruption under the Model Code.


One of your brokers asks you to buy and sell EUR/USD at the same price net of brokerage in order toallow him to c ...


You have written a EUR/USD knock in option for a bank counterparty. At 6pm New York time on Friday,the instrike ...


BACD434CCAFA8D24B56238B9When dealing with customers, financial market professionals are advised by the Model Code ...


The Model Code strongly recommends that intra day oral deal checks should:


A 3 month (90 day) USD deposit is 5.5625% and 6 month (180 day) USD deposit is 5.75%. What is the3x6 USD depo ...


A 7 day piece of USCP is quoted at a rate of discount of 1.75%. What is its true yield.


A 1 month (30 day) USCP with a race value of USD 5 million is quoted at a rate of discount of 2.31%. Howmuch is ...


Which of the following is issued by auction.


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


A CD with a face value of USD 50 million and a coupon of 4.50% was issued at par for 90 days and is nowtrading at ...


The spot/next repo rate for the 5% bund 2006 is quoted to you at 1.75 80%. You sell bonds with a marketvalue of ...


What is the ISO code for the currency of Hungary.


month USD/CHF is quoted at 112/110. Interest rates in Switzerland are reduced but USD rates (whichare higher) a ...


If a 6 month AUD/NZD swap is quoted 173/165, which of the following statements would you consider tobe correct. ...


A customer asks for a price in 3 month CHF/JPY. You quote 56/54. The customer deals at 54. What haveyou done. ...


You are quoted the following market rates:spot EUR/GBP 0.66706M (182 day) EUR 2.35%6M (182 day) GBP 375%What is ...


You are quoted the following market rates:spot GBP/US


You bought a EUR 8,000,000 6x9 FRA at 4.50%. The settlement rate is 3 month (90 day) EURIBOR,which is fixed at ...


An interest rate swap is:


How are Overnight Indexed Swaps settled.


An at the money call option:


What is a long straddle option strategy.


Click on the Exhibit Button to view the Formula Sheet. If you bought USD 2,000,000 against CHF at1.1020, USD 3,00 ...


You have done the following deals in spot USD/JPY:Sold USD 5.0 million at 111.60Bought USD 3.5 million at 111.20B ...


Half an hour ago you were made a price in USD/CAD of 1.5250 55 and sold USD 10 million. The price isnow 1.5232 ...


At the end of the day you are short EUR 10 million against GBP at 0.6712. You are asked to revalue yourposition a ...


A broker can consider a deal as done if:


A bank that has quoted a firm price is obliged to deal:


What is Model Codes recommendation on the settlement of dirrerences by “points”.


A dealer has been asked by a broker to go to an exclusive club for the third time in a week. He should:


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


Dealers are allowed to trade for their own account if:


The use of mobile phones from within the dealing room for transacting business:


When a broker makes an error on payment instructions The Model Code recommends that


Under the Model Code, it a broker shouts “done” or “mine” at the very moment a dealer shouts “off”: ...


Market participants should, where activity justifies it, aim to reduce settlement and related credit risk oncurre ...


What does the Model Code say about the responsibility of a broker in handling suspicious transactions.


A person who appears to be a technician asks for your help in accessing treasury systems as he hasforgotten his l ...


One or your brokers asks you to buy and sell EUP/USD at the same price net of brokerage in order toallow him to c ...


It is up to the vendors of electronic dealing platforms to ensure that dealers are trained to use theirsystems. ...


When using legal documentation proposed modifications:


What are IMM dates.