Click on the Detail Button to view the Formula Sheet. What are the secondary market proceeds of a CD with a face value of EUR 5 million and a coupon of 3% that was issued at par for 182 days and is now trading at 3% but with only 7 days remaining to maturity?

A. EUR 4,997,085.03

B. EUR 5,000,000.00

C. EUR 5,071,086.45

D. EUR 5,072,874.16

Click on the Detail Button to view the Formula Sheet. A forward-forward loan creates an exposure to the risk of:

A. Higher interest rates

B. Lower interest rates

C. Steepening yield curve

D. Parallel shift downwards in the yield curve

Click on the Detail Button to view the Formula Sheet. You have a USD loan that is priced at 3-month

LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting:

1x3 USD FRA. 1.95-98%

1x4 USD FRA. 2.07-10%

1x6 USD FRA. 2.25-28%

To hedge the next LIBOR fixing, you should:

A. Sell a 1x3 FRA at 1.95%

B. Buy a 1x3 FRA at 1.98%

C. Buy a 1x4 FRA at 2.10%

D. Sell a 1x4 FRA at 2.10%

Click on the Detail Button to view the Formula Sheet. What is EONIA?

A. Volume-weighted average overnight EUR deposit rate

B. Volume-weighted average overnight EUR LIBOR

C. Arithmetic average overnight EUR deposit rate

D. ECB overnight lending rate

Click on the Detail Button to view the Formula Sheet. The delta of an at-the-money long call option is:

A. Between +0.5 and +1

B. +0.5

C. Between 0 and +0.5

D. Zero

Click on the Detail Button to view the Formula Sheet. Where repos or securities lending transactions are entered into, the Model Code recommends:

A. Documentation should be in place beforehand.

B. Management should approve all transactions.

C. Copies of the underlying documentation should be lodged with regulators.

D. All of the above.

Click on the Detail Button to view the Formula Sheet. If a dealer has any intention of assigning an interest rate swap to a third party soon after transacting that swap:

A. The dealer should not reveal his future dealing intentions to his counterparty.

B. The dealer should make his intention to assign clear before transacting.

C. The dealer should agree the method of assignment before transacting.

D. The counterparty should specify whether or not assignment would be acceptable in negotiations.

Click on the Detail Button to view the Formula Sheet. 3-month EUR/USD FX swaps are quoted to you at 15/19. If the "points are in your favour", what have you done?

A. Bought and sold 3-month EUR/USD through the swap

B. Sold and bought 3-month EUR/USD through the swap

C. Made the quote

D. Cannot say

Click on the Detail Button to view the Formula Sheet. In the unforeseen event that a particular maturity date is declared a public holiday, what is normal market practice for spot FX? :

A. Extend the contract to the next business day

B. Shorten the contract to the previous business day

C. A new maturity date has to be agreed by the two parties involved

D. ACI's Committee for Professionalism decides on a case by case basis

Click on the Detail Button to view the Formula Sheet. Where internet trading facilities are established by a bank for a client, the conditions and controls should be stated in a rulebook produced by:

A. The bank.

B. The local bankers association.

C. The local regulator.

D. Negotiation between the bank and client.