ACI Dealing Certificate v9.0

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Exam contains 740 questions

The vega of an option is:

  • A. The sensitivity of the option value to changes in interest rates
  • B. The sensitivity of the option value to changes in implied volatility
  • C. The sensitivity of the option value to changes in the time to expiry
  • D. The sensitivity of the option value to changes in the price of the underlying


Answer : B

The major risk to the effectiveness of netting is:

  • A. Credit risk
  • B. Settlement risk
  • C. Liquidity risk
  • D. Legal risk


Answer : D

If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:

  • A. the value date of the financial centre that is open
  • B. the next business day of the financial centre which is closed
  • C. the next business day when both New York and Tokyo are open
  • D. the previous business day when both New York and Tokyo are open


Answer : C

When do bank participants have a duty to make absolutely clear whether the prices they are quoting are firm or merely indicative?

  • A. only if they are dealing with brokers
  • B. only if dealing on an e-trading platform
  • C. only if they are dealing in non-marketable amounts
  • D. always


Answer : D

How long does the Model Code recommend that tapes and other records of dealers/brokers be kept?

  • A. at least two months
  • B. one year
  • C. up to one month
  • D. at least three months


Answer : A

The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%.
As collateral, you sell EUR 10,000,000.00 nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00, with no initial margin. The Repurchase Price is:

  • A. EUR 10,000,500.00
  • B. EUR 10,000,486.11
  • C. EUR 11,260,563.00
  • D. EUR 11,260,547.36


Answer : C

The mid-rate for USD/CHF is 0.9300 and the mid-rate for NZD/USD is 0.8560. What is the mid rate for NZD/CHF?

  • A. 0.7961
  • B. 1.0864
  • C. 1.7860
  • D. 1.2561


Answer : A

Which one of the following statements about interest rate movements is true?

  • A. An upward parallel shift of interest rates will cause a loss of income if the rate-sensitivity of a banks liabilities is higher than the rate-sensitivity of its assets.
  • B. A bank will lose income if it has more rate-sensitive liabilities than rate-sensitive assets.
  • C. Falling interest rates will always result in mark-to-market profits on short positions in fixed rate securities.
  • D. Rising interest rates can result in mark-to-market losses on fixed-rate assets.


Answer : D

The exercise price in an option contract is:

  • A. The price of the underlying instrument at the time of the transaction
  • B. The price at which the transaction on the underlying instrument will be carried out if and when the option is exercised
  • C. The price the buyer of the option pays to the seller when entering into the options contract
  • D. The price at which the two counterparties can close-out their position


Answer : B

Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?

  • A. minimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%
  • B. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%
  • C. minimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%
  • D. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%


Answer : D

You have taken 3-month (92 days) deposits of CAD 12,000,000.00 at 1.10% and CAD
6,000,000.00 at 1.04%. Minutes later, you quote 3-month CAD 1.09-14% to another bank.
The other dealer takes the CAD 18,000,000.00 at your quoted price. What is your profit or loss on this deal?

  • A. CAD 2,722.19
  • B. CAD 460.00
  • C. CAD 3,220.00
  • D. CAD 2,760.00


Answer : D

Which of the following is a Eurocurrency deposit?

  • A. A 3-month deposit of USD 10,000,000.00 offered by a US bank in New York
  • B. A 3-month deposit of USD 10,000,000.00 offered by the US branch of a UK bank in New York
  • C. A 3-month deposit of USD 10,000,000.00 offered by a US bank in London
  • D. A 3-month deposit of GBP 10,000,000.00 offered by the UK branch of a US bank in London


Answer : C

A 12-month EUR/USD swap is quoted at 41/44. EUR interest rates are expected to fall, with USD interest rates remaining stable.
Assuming no change in the spot rate what effect would you expect on the forward points?

  • A. Unchanged
  • B. Move towards 28/31
  • C. Move towards 5 7/60
  • D. Insufficient information


Answer : C

When banks transact FX swaps, the spot price should be determined:

  • A. anytime after the swap is transacted
  • B. before the swap is transacted
  • C. immediately after the swap is transacted
  • D. no less than 24 hours after the completion of the swap


Answer : C

As far as fineness and weight are concerned, what are the London Bullion Market
Association (LBMA) requirements for a good delivery bar?

  • A. at least 995/1000 pure gold; weight between 350 and 430 fine ounces
  • B. minimum 999.9/1000 pure gold; weight between 350 and 430 fine ounces
  • C. at least 995/1000 pure gold; weight of 400 fine ounces
  • D. minimum 995/1000 pure gold; weight of 400 fine ounces


Answer : A

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Exam contains 740 questions

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