Online Access Free 3I0-012 Exam Questions

How can options be used to synthesize a short position in the underlying commodity?

• A.A long put option + short call option at the same strike price
• B.A short put option + short call option at the same strike price
• C.A long put option + long call option at the same strike price
• D.A short put option + long call option at the same strike price

What recommendation does the Model Code make in cases of market disruption?

• A.Parties may unilaterally decide whether they wish to adhere to the terms of the agreement or to amend the terms of the transaction to follow the relevant procedure.
• B.Participants must at all times adhere to the rules issued by local regulators, supervisors or central banks even if these rules or procedures conflict with any provision of an existing written agreement.
• C.Even if local provisions are in place, market participants should only adhere to the ACI best practices of the Model Code in order to maintain efficiency and avoid disputes.
• D.Market participants should strictly adhere to the rules issued by local regulators, supervisors or central banks in order to maintain efficiency and avoid disputes.

The Liquidity Coverage Ratio (LCR) in Basel III:

• A.spells out a modernized system for calculating the required minimum reserve that banks must hold at the central bank
• B.is a new rule that compares liquid asset levels in banks to their available equity capital
• C.compares liquid and reliably liquidating assets to expected cash outflows from specified run-off rates for various liability classes under a short-term stress scenario
• D.tied directly into the internal ratings-based approach for determining the liquidity of creditcounterparties

Spot cable is quoted at 1.6048-53 in the brokers and you quote a customer 1.6050-55 in USD 3 million, If they sell USD to you, how much GSP will you be short of?

• A.1.868,576.77
• B.1,868,809.57
• C.4,816,500.00
• D.4,815,900.00

A customer gives you GBP 25,000,000.00 at 0.625% same day for 7 days.
Through a broker, you place the funds with a bank for the same period at 0.6875%.
Brokerage is charged at 2 basis points per annum.
What is the net profit or loss on the deal?

• A.ProfitofGBP 299.66
• B.Profit of GBP 203.77
• C.LossofGBP299.66
• D.Loss ofGBP 203.77