3I0-008 Online Practice Questions and Answers

Click on the Detail Button to view the Formula Sheet. Which of the following rates represents the highest investment yield in the euromarket?

A. Semi-annual bond yield of 3.75 %

B. Annual bond yield of 3.75 %

C. Semi-annual money market yield of 3.75 %

D. Annual money market rate of 3.75 %

Click on the Detail Button to view the Formula Sheet. An option is:

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 commodity at a fixed price

Click on the Detail Button to view the Formula Sheet. Written confirmation is a function that can be done by:

A. Any dealer as long as he/she is not a party to the trade.

B. Staff in the back-office.

C. Staff in the dealing room who are not dealing.

D. Any staff outside the dealing room.

Click on the Detail Button to view the Formula Sheet. The delta of an at-the-money long call option is:

A. Between +0.5 and +1

B. +0.5

C. Between 0 and +0.5

D. Zero

Click on the Detail Button to view the Formula Sheet. Bank XYZ calls you for a quote in EUR/USD for EURO 20 million. If you decide to quote to Bank XYZ:

A. You must be prepared to deal up to EUR 20 million.

B. You may quote without stating the amount you are prepared to deal.

C. You are only committed to deal in a marketable amount.

D. None of the above.

Click on the Detail Button to view the Formula Sheet. What are the secondary market proceeds of a CD with a face value of EUR 5 million and a coupon of 3% that was issued at par for 182 days and is now trading at 3% but with only 7 days remaining to maturity?

A. EUR 4,997,085.03

B. EUR 5,000,000.00

C. EUR 5,071,086.45

D. EUR 5,072,874.16

Click on the Detail Button to view the Formula Sheet. What is an outright forward FX transaction?

A. A spot sale (purchase) and a forward purchase (sale)

B. A spot sale (purchase) and a forward sale (purchase)

C. An exchange of currencies on a date beyond spot and at a price fixed today

D. An exchange of currencies on a date beyond spot

Click on the Detail Button to view the Formula Sheet. You have quoted a Swiss customer spot USD/CHF as 1.3710-15, but he asks you to quote it as CHF/USD. What do you quote ?

A. 0.7291-94

B. 0.7294-91

C. 1.3710-15

D. None of these

Click on the Detail Button to view the Formula Sheet. Which of the following would not constitute an event of market disruption under the Model Code?

A. The imposition of capital controls.

B. A major terrorist attack on a financial centre.

C. The failure of SWIFT.

D. Concerted central bank intervention.

Click on the Detail Button to view the Formula Sheet. What are IMM dates?

A. The 10th of March, June, September and December.

B. The third Wednesdays of January, April, July and October.

C. The Mondays before the third Wednesdays of March, June, September and December.

D. The third Wednesdays of March, June, September and December.