Online Access Free 3I0-012 Exam Questions

What is the purpose of a short straddle option strategy?

• A.To anticipate lower volatility in the price of the underlying commodity
• B.To anticipate very high volatility in the price of the underlying commodity
• C.To anticipate increasing volatility in the price of the underlying commodity
• D.To anticipate moderately high volatility in the price of the underlying commodity

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

• A.Sending settlement instructions
• B.Investigating settlement discrepancies
• C.Exchanging standard settlement instructions (SSIs)
• D.Keeping a contact list of all back office staff of the bank's counterparties

In the deposit broker market, which one of the following is not a valid reason for the proposed borrower to decline the lenders name?

• A.In the case of short date deposits, if the borrower is not prepared to repay the deposit prior to notice of receipt of the funds from the correspondent bank.
• B.The borrower would be in breach of internal or regulatory depositor concentration limitations.
• C.If he secures a better rate elsewhere.
• D.The borrower has no lending line for the placer of the funds and does not wish to be embarrassed by being unable to reciprocate.

Basis risk on a futures contract is:

• A.The risk of a divergence between the futures price and the final fixing of the underlying interest rate
• B.The risk of an adverse change in the futures price
• C.The progressive illiquidity of a futures contract as it approaches expiry
• D.The risk of an adverse change in the spread between futures and cash prices

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.2.1885
• C.2.1895
• D.2.2125