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Pearson 3I0-012 New Attempt

Page: 26 / 28
Total 740 questions
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ACI Dealing Certificate Questions and Answers

Question 101

The seller of a floor:

Options:

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

Question 102

If a dealer needs to hedge an over-lent 3x6 position against 1MM dates for which the FRA is quoted 1.30-1.34% and futures at 98.64, which would be cheapest for him (ignoring margin costs on futures positions) to cover his gap?

Options:

A.

FRA

B.

Futures

C.

No difference

D.

Too little information to decide

Question 103

In the unforeseen event that a particular maturity date is declared a public holiday, what is standard market practice for spot FX?

Options:

A.

to extend the contract to the next business day

B.

to shorten the contract to the previous business day

C.

The two parties involved agree to a new maturity date.

D.

There is no standard market practice. ACIs Committee for Professionalism decides the issue on a case-by-case basis.

Question 104

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

Options:

A.

Today

B.

Tomorrow

C.

After you make an irrevocable payment

D.

On the spot value date

Page: 26 / 28
Total 740 questions
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