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ACI 3I0-012 - ACI Dealing Certificate

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Total 740 questions

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.

What is a hedge?

A.

A means by which to reduce a risk

B.

An equal and opposite risk

C.

A riskless transaction

D.

A means of cancelling a deal

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

A.

Sell and buy GBP/USD T/N

B.

Buy and sell GBP/USD T/N

C.

Sell GBP/USD spot, and sell and buy GBP/USD T/N

D.

Buy GBP/USD spot, and buy and sell GBP/USD T/N

The seller of a floor:

A.

Receives compensation if a reference interest rate falls below an agreed level

B.

Pays compensation if a reference interest rate falls below an agreed level

C.

Receives compensation if a reference interest rate rises above an agreed level

D.

Pays compensation if a reference interest rate rises above an agreed level

You quote the following rates to a customer spot GBP/CHF 2.2005-10

3M GBP/CHF swap 120/115

At what rate do you sell GBP to a customer 3-month outright?

A.

2.1890

B.

2.2125

C.

2.1895

D.

2.1885

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

A.

Be conducted out at the end of the morning and afternoon trading sessions.

B.

Be only be conducted after the close of business.

C.

Be mutually agreed between the bank and the broker or counterparty.

D.

Be the responsibility of the broker.

Half an hour ago you were made a price in USD/CAD of 1.5250-55 and sold USD 10 million. The price is now 1.5232-37 and you square your position. What is your profit or loss?

A.

+CAD 23,000

B.

+CAD 13,000

C.

+CAD 16,000

D.

-CAD 13,000

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

A.

Immediately put the price “under reference” and check with the dealer to ascertain his original intention.

B.

Cancel the order.

C.

Continue with the order.

D.

None of the above.

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

A.

1.73%

B.

1.75%

C.

1.77%

D.

1.80%

A dealer needs to buy USD against SGD. Of the following rates quoted to him, which is the best rate for him?

A.

1.4323-26

B.

1.4320-25

C.

1.4315-20

D.

1.4318-23

Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:

A.

Break-even rate

B.

Implied rate

C.

Forward-forward rate

D.

All of the above

An option premium is a positive function of:

A.

Time to expiry

B.

The volatility of the price of the underlying commodity

C.

The moneyness of the option

D.

All of the above

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

A.

It is forbidden to park positions.

B.

In conditions of exceptional volatility.

C.

If the two counterparties agree.

D.

If approved by senior management.

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

A.

It is good practice for compliance, legal or credit functions to identity counterparties before the execution of a deal.

B.

Management should have in place a clearwritten policy and procedures governing such transactions.

C.

Management needs to be aware of the risks involved, particularly with respect to credit exposure and money laundering.

D.

All of the above.

What is a long straddle option strategy?

A.

A long call option + long put option with the same strike prices

B.

A short call option + short put option with the same strike prices

C.

A long call option + short put option with the same strike prices

D.

A short call option + long put option with the same strike prices