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Viewing page 7 out of 15 pages
Viewing questions 91-105 out of questions
Questions # 91:

Which of the following is always a secured instrument?

Options:

A.

ECP

B.

Repo

C.

Interbank deposit

D.

CD

Expert Solution
Questions # 92:

An option is:

Options:

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 a commodity at a fixed price

Expert Solution
Questions # 93:

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

Options:

A.

has the option to fulfill the outright forward or not at maturity

B.

may freely choose the maturity, given a 24-hour notice to the bank

C.

can choose any maturity within a previously fixed period

D.

may decide to deal at the regular maturity or on either the business day before or after

Expert Solution
Questions # 94:

You are quoted the following market rates:

Spot GBP/USD 1.5525

9M (272-day) GBP 0.81%

9M (272-day) USD 0.55%

What are the 9-month GBP/USD forward points?

Options:

A.

-30

B.

+29

C.

-29

D.

+30

Expert Solution
Questions # 95:

A 30-day 4% CD with a face value of GBP 20,000,000.00 is trading in the secondary market with 20 days remaining to maturity at 4.05%.

What would be your holding period yield if you bought the CD now and held it to maturity?

Options:

A.

4.05%

B.

4.0%

C.

3.891%

D.

3.838%

Expert Solution
Questions # 96:

Which one of the following statements is true?

Options:

A.

Brokers should only show the names of banks to counterparties who have prime credit ratings.

B.

Brokers should only show the names of banks to counterparties who provide good liquidity to the brokered market.

C.

Brokers should only show the names of banks to counterparties whom they know well.

D.

Brokers should only show the names of bank counterparties if both sides display a serious intention to transact

Expert Solution
Questions # 97:

What is the purpose of a long strangle option strategy?

Options:

A.

To anticipate very low volatility in the price of the underlying commodity

B.

To anticipate moderately high volatility in the price of the underlying commodity

C.

To anticipate moderate volatility in the price of the underlying commodity

D.

To anticipate very high volatility in the price of the underlying commodity

Expert Solution
Questions # 98:

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

Options:

A.

EUR

B.

JPY

C.

CHF

D.

All of the above

Expert Solution
Questions # 99:

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

Options:

A.

It is not favoured.

B.

It may be permitted when allowed by the local market regulator.

C.

Itis unconditionally accepted bythe Code.

D.

It is allowed only if senior management approval is obtained.

Expert Solution
Questions # 100:

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

Options:

A.

At that price.

B.

At that price in a marketable amount.

C.

At that price in a marketable amount with an acceptable name.

D.

At that price in a marketable amount with an acceptable name and provided the market price has not moved excessively.

Expert Solution
Questions # 101:

What is meant by “short dates”?

Options:

A.

Maturities of less than one week.

B.

Maturities of less than one month.

C.

Maturities of less than one year.

D.

Maturities in the same calendar month.

Expert Solution
Questions # 102:

Which of the following is true?

Options:

A.

The Euronext.LIFFE short sterling futures contract has a tick value of GBP 12.50 and a face value of GBP 1,000,000

B.

The Euronext.LIFFE JPY futures contract has a tick value of JPY 2,500 and a face value of JPY 1,000,000,000

C.

The CME eurodollar futures contract has a minimum price interval of one-quarter tick

(0.0025) for the nearest contract

D.

All of the above

Expert Solution
Questions # 103:

The term “under reference” refers to:

Options:

A.

An unavailability of credit limit for the counterparty.

B.

The need to reconfirm a transaction.

C.

The unacceptability of the counterparty’s name.

D.

The rate quoted is going to be revised.

Expert Solution
Questions # 104:

An option premium is a positive function of:

Options:

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

Expert Solution
Questions # 105:

Click on the Exhibit Button to view the Formula Sheet, If the value date of forward USD/JPY transactions is declared a holiday in either New York or Tokyo, the correct value date will be:

Options:

A.

The value date of the centre which is open.

B.

The next business day of the centre which is closed.

C.

The next business day when both NewYork and Tokyo are open.

D.

None of the above.

Expert Solution
Viewing page 7 out of 15 pages
Viewing questions 91-105 out of questions