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

0.7961

1.0864

1.7860

1.2561

Substantial opportunity for gain and limited risk of loss

Substantial risk of loss and substantial opportunity for gain

Limited risk of loss and limited opportunity for gain

Substantial risk of loss and limited opportunity for gain

buying futures contracts on 30-year German Government bonds

selling futures contracts on 30-year German Government bonds

buying put options on 30-year German Government bonds

buying a 3x6 forward rate agreement

The buyer

The seller

Neither

Both

Delivery repo

HIC repo

TO-party repo

There is no real difference

Profiles for functions are encouraged and should be reviewed semi-annually by a manager.

Developers should have unrestricted access to production systems.

Access to production systems should be rigorously controlled.

Users should not have access to change system functionalities.

beta

gamma

delta

theta

Traded on the Chicago Mercantile Exchange (CME Group) and have a face value of USD 500,000.00

Traded on the Intercontinental Exchange (ICE) and have a face value of USD 1,000,000.00

Traded on the Intercontinental Exchange (ICE) and have a face value of USD 500,000.00

Traded on the Chicago Mercantile Exchange (CME Group) and have a face value of USD 1,000,000.00

minimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%

minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%

minimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%

minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%

Intrinsic value but no time value

Time value but no intrinsic value

Both time value and intrinsic value

Neither time value nor intrinsic value

Credit institution

Investment bank

Corporate

Central Bank

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

The EUROYEN TIBOR futures contract has a basis point value of JPY 25,000 and a face value of JPY 1,000,000,000

The CME EURODOLLAR futures contract has a minimum price interval of one-quarter basis point value (0.0025) for the nearest contract

The 3-month EURIBOR futures contract has a minimum price interval of half a basis point value (0.0050) for the nearest contract

A loss of at least EUR 2,000,000.00 can be expected in 97 out of the next 100 days.

A loss of at most EUR 2,000,000.00 can be expected in 3 out of the next 100 days.

A loss of at least EUR 2,000,000.00 can be expected in 3 out of the next 100 days.

A loss of at most EUR 2,000,000.00 can be expected in 6 out of the next 100 days.

the trader acquires additional exposure in the hedged item.

the hedging instrument is sold, terminated or exercised.

the hedged item is sold or settled.

a hedge fails the effectiveness test.

It is now a widely accepted standard that banks should use a single representative transfer price across the entire maturity spectrum.

Modern matched-maturity pricing systems include an additional liquidity surcharge that is specifically applied to more liquid short maturities.

Matched-maturity transfer prices should represent a weighted average cost of capital that incorporates the cost of equity into the cost of borrowed funds.

Modern matched-maturity systems differentiate transfer prices by the maturity of the commitment and also apply a marginal funding cost perspective.