ACI 3I0-012 - ACI Dealing Certificate Exam
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Total 740 questions
Question #11 (Topic: Topic 1)
Which of the following is true?
A. The 3-month Sterling (SHORT STERLING) futures contract has a basis point value of GBP 25.00 and a face value of GBP 1,000,000 .00
B. The EUROYEN TIBOR futures contract has a basis point value of JPY 25,000 and a face value of JPY 1,000,000,000
C. The CME EURODOLLAR futures contract has a minimum price interval of one-quarter basis point value (0.0025) for the nearest contract
D. The 3-month EURIBOR futures contract has a minimum price interval of half a basis point value (0.0050) for the nearest contract
Answer: C
Question #12 (Topic: Topic 1)
Which of the following rates represents the highest investment yield in the Euromarket?
A. Semi-annual bond yield of 3.75%
B. Annual bond yield of 3.75%
C. Semi-annual money market yield of 3.75%
D. Annual money market rate of 3.75%
Answer: C
Question #13 (Topic: Topic 1)
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?
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?
A. 4.05%
B. 4.0%
C. 3.891%
D. 3.838%
Answer: B
Question #14 (Topic: Topic 1)
A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is
3.25%. If you held GBP 10,500,000.00 of this bond, what would be the cost of borrowing
against it in the repo market?
3.25%. If you held GBP 10,500,000.00 of this bond, what would be the cost of borrowing
against it in the repo market?
A. GBP 7,551.37
B. GBP 6,544.52
C. GBP 5,537.67
D. GBP 1,006.85
Answer: C
Question #15 (Topic: Topic 1)
What ought to be done in the event a trade erroneously occurs at an off-market rate?
A. By agreement between the two counterparties, the trade must be cancelled as soon as practically possible since a rate amendment is prohibited.
B. By agreement between the two counterparts, the trade should, as soon as practically possible, either be cancelled or have its rate amended to an appropriate market rate.
C. The off-market rate should be adjusted as soon as possible to the appropriate current market rate and a new authenticated SWIFT confirmation sent immediately to the counterparty.
D. Nothing need be done, since once a trade is agreed to by the front office it is a binding agreement for both counterparties.
Answer: B
