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VCE
Click on the Detail Button to view the Formula Sheet. A customer gives you GBP 25 million at 6.625% same day for 7 days. Through a broker, you place the funds with a bank for the same period at 6.6875%. Brokerage is charged at 2 basis points per annum. What is the net profit or loss on the deal?
A. Profit of GBP 299.66
B. Profit of GBP 203.77
C. Loss of GBP 299.66
D. Loss of GBP 203.77
Click on the Detail Button to view the Formula Sheet. The major difference between futures and OTC instruments like FRAs and interest rate swaps is that futures are:
A. Exchange-traded
B. Guaranteed
C. Standardised
D. All of the above
Click on the Detail Button to view the Formula Sheet. Bank A pays for EURO 5 m at 1.1592. Bank B offers EURO 10 m at 1.1597. Broker XYZ quotes to the market EURO / USD 1.1592/97. Bank C takes the offer at 97. The broker is obliged to reveal:
A. The name of Banks A and B
B. The name of Bank B only.
C. The amount that was bid but not the name of Bank A
D. None of the above