ACI 3I0-012 Exam Success: ACI Dealing Certificate Complete Study and Preparation Tips

The price of the underlying commodity at the time of the transaction

The price at which the transaction on the underlying commodity will be carried out if and when the option is exercised

The price the buyer of the option pays to the seller when entering into the options contract

The price at which the two counterparties can close-out their position

Credit risk

Legal risk

Settlement risk

Basis risk

Will encourage clients to do more business.

Will help prevent potential litigation.

Will help banks sell sophisticated risk management solutions.

Is required by all regulators.

Buy USD spot, and buy and sell a 3-month EUR/USD FX swap

Sell EUR/USD in the spot market, borrow EUR for 3 months and lend USD for 3 months

Sell a 3-month EUR/USD outright forward

Any of the above

The credit risk on the collateral

The credit risk on the repo counterparty

The legal risk on the contract

The operational risk on margin maintenance

It is forbidden to park positions.

In conditions of exceptional volatility.

If the two counterparties agree.

If approved by senior management.

Ensure complaints are investigated by the senior management or a firm not involved in the disputed transaction.

Ensure complaints are rairly and independently investigated, in the first instance, by the ACIs Committee for Professionalism.

Ensure complaints are investigated by representatives of a broking firm not directly involved in the disputed transaction and selected by both parties to the dispute.

Ensure complaints are fairly and independently investigated, whenever practicable, by staff not directly involved in the disputed transaction.

The amount of the deal exceeds EUR 5 million.

The local regulator or central bank declines to intervene.

Litigation has already commenced.

At the request of one of the counterparties.

The broker remains liable for the resulting difference for 3 full business days following the date of the transaction.

The broker remains liable until the error is discovered.

The broker is not liable at all.

The broker’s liability should be limited as he is not in a position to directly rectify the situation.

unchanged

118/116

109/107

106/104

You will have to pay USD 612.50

You will receive USD 612.50

You will have to pay USD 3,675.00

You will receive USD 3,675.00

A contract to exchange one stream of income payments for another

A temporary exchange of one deposit for another of a longer maturity in the same currency

A forward-forward contract

All of the above

You must have prior senior management approval.

You must have the authority to switch names.

You must execute such transactions as promptly as possible within policy guidelines

All of the above.

Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.

Paying a fixed rate of 4.12% per annum on an actual/actual basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.

Paying a 5-year euro deposit and receiving a rate of interest of 4.12% on an actual/360 basis. Taking a 5-year euro deposit and paying a rate ol interest of 4.12% on an actual/360 basis.

+121

+120

-116

-119