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You are short of 6 Dec eurodollar futures contracts at 98.10. Yesterday, the closing price was 98.15. Todays closing price is 97.905. What variation margin will be due?


A) You will have to pay USD 612.50
B) You will receive USD 612.50
C) You will have to pay USD 3,675.00
D) You will receive USD 3,675.00

E) None of the above
F) B) and D)

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You deal over the phone with a counterparty. The subsequent confirmation differs from the terms agreed verbally. What is the result?


A) The confirmation takes precedence as it is a writt
B) The matter will have to be submitted to arbitratio
C) It depends on local law.
D) The verbal agreement is binding.

E) A) and D)
F) A) and C)

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Todays date is Thursday 12th December. What is the spot value date? Assume no bank holidays.


A) 14th December
B) 15th December
C) 16th December
D) 17th December

E) A) and C)
F) A) and B)

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What is the value date of a 6-month outright forward FX transaction dealt today, if todays spot date is Monday, 30 th June? Assume there are no bank holidays.


A) 27th December
B) 30th December
C) 31st December
D) 1st January

E) A) and B)
F) A) and C)

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Automatic trading systems for interbank spot FX display the best prices entered into the systems by users and:


A) Display the names of those users along their price
B) Offer pre-trade anonymity to users quoting prices
C) Offer pre and post-trade anonymity to users quotin
D) Offer users the choice of whether to remain anonym

E) All of the above
F) A) and C)

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A 3-month (90-day) USD deposit is 5.5625% and 6-month (180-day) USD deposit is 5.75%. What is the 3x6 USD deposit rate?


A) 5.8342%
B) 5.8561%
C) 5.8425%
D) 5.75%

E) A) and B)
F) B) and C)

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You bought a USD 4,000,000 6x9 FRA at 6.75%. The settlement rate is 3-month (90-day) BBA LIBOR, which is fixed at 5.50%. What is the settlement amount at maturity?


A) You receive USD 12,330.46
B) You pay USD 12,330.46
C) You pay USD 12,163.81
D) You receive USD 12,163.81

E) A) and D)
F) C) and D)

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The term "under reference" refers to:


A) An unavailability of credit limit for the counterp
B) The need to reconfirm a transaction.
C) The unacceptability of the counterparty's name.
D) The rate quoted is going to be revised.

E) C) and D)
F) A) and D)

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How much is a big figure worth per million of base currency if EUR/GBP is 0.6990?


A) GBP 10,000
B) EUR 10,000
C) GBP 6,990
D) EUR 6,990

E) A) and B)
F) C) and D)

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Where answerphone equipment is used for reporting and recording of off-premises transactions, it should be:


A) On an special number known only to the chief deale
B) On a number located in the office of the internal
C) Secured so that reported transactions cannot be er
D) Secured by recordings that are stored for a suitab

E) A) and B)
F) A) and C)

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How are Overnight Indexed Swaps settled?


A) periodic exchange of fixed and floating payments u
B) at maturity by net payment
C) after maturity by exchange of fixed and floating p
D) after maturity by net payment

E) A) and B)
F) A) and C)

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Which of the following would not constitute an event of market disruption under the Model Code?


A) The imposition of capital controls.
B) A major terrorist attack on a financial centre.
C) The failure of SWIFT.
D) Concerted central bank intervention.

E) B) and D)
F) B) and C)

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A CD with a face value of USD 250 million was issued at par with a coupon of 5% for 91 days. You buy it in the secondary market when it has 30 days remaining to maturity and is trading at 5.25%. How much do you pay?


A) USD 252,056,972.97
B) USD 252,028,916.32
C) USD 250,000,000.00
D) USD 248,911,014.31

E) None of the above
F) A) and B)

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The forward points are calculated from:


A) The level of interest rates in the base currency
B) The level of interest rates in the quoted currency
C) The interest rates in the two currencies
D) Your expectations of the future spot rate

E) A) and B)
F) A) and C)

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A customer asks for a price in 3- month CHF/JPY. You quote 56/54. The customer deals at 54. What have you done?


A) Bought CHF against JPY spot and sold JPY against C
B) Sold CHF against JPY spot and bought CHF against J
C) Bought CHF against JPY spot and sold CHF against J
D) Bought JPY against CHF 3-month outright

E) A) and B)
F) A) and C)

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What is the probability of an at-the- money option being exercised?


A) Less than 50% probability
B) 50% probability
C) More than 50% probability
D) Zero probability

E) All of the above
F) A) and B)

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In all dealing conversations, the Model Code strongly recommends:


A) Dealers stick to market terminology in order to av
B) Dealers clarify what is being proposed rather than
C) Dealers restrict themselves to terminology listed
D) Dealers define complex terminology in the confirma

E) B) and C)
F) A) and C)

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The Model Code recommends that when banks accept a stop-loss order:


A) Management must ensure ongoing lines of communicat
B) Management must report to the central bank.
C) Management allows only experienced dealers to take
D) Bank staff must secure the approval of the counter

E) A) and D)
F) C) and D)

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Brokers should confirm all transactions:


A) Initially by fax or other acceptable electronic me
B) Only if the deal is between overseas counterpartie
C) Only if the transaction is not for a marketable am
D) To both counterparties immediately by fax or other

E) A) and D)
F) None of the above

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What is the Overnight Index for GBP?


A) SONIA
B) STINA
C) LIBOR
D) EONIA

E) B) and D)
F) A) and B)

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