ACI DEALING CERTIFICATE - 3I0-008 FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

Click on the Exhibit Button to view the Formula Sheet. A dealer has indicated his intention of assigning an interest rate swap to a third party soon after transacting that swap. When about to execute an assignment:

A. The dealer is entitled to provide the name of the assignee to the original counterparty. B. The dealer is entitled to provide the name of the original counterparty to the assignee. C. The dealer should seek the permission of the assignee before releasing the name to the original counterparty. D. The dealer should seek the permission of the original counterparty before releasing the name to the assignee.

Discussion 0

Correct Answer: C Vote an answer

Question 2

Click on the Exhibit Button to view the Formula Sheet. The intrinsic value of a long call option:

A. Rises if the price of the underlying commodity falls and vice versa B. Depends solely on the volatility of the price of the underlying commodity C. Becomes negative if the market price of the underlying commodity falls below the strike price of the option D. Falls and rises with the price of the underlying commodity, but is always positive

Discussion 0

Correct Answer: D Vote an answer

Question 3

Click on the Exhibit Button to view the Formula Sheet. The extension of forward FX contracts at their historic rates is only allowed when:

A. They are extended for not more than one year. B. All of the above. C. Prior management approval has been sought. D. They are executed within six months.

Discussion 0

Correct Answer: C Vote an answer

Question 4

Click on the Exhibit Button to view the Formula Sheet. Management policy on the use of mobile devices by trading, sales and settlement staff should:

A. Restrict their use to senior management and authorised out-of-hours trading and sales staff. B. Ban them from the dealing room or back office. C. State whether they are allowed in the dealing room and back office, and can be used. D. Ban their use in the dealing room or back office.

Discussion 0

Correct Answer: C Vote an answer

Question 5

Click on the Exhibit Button to view the Formula Sheet. What is the purpose of a long strangle option strategy?

A. To anticipate very high volatility in the price of the underlying commodity B. To anticipate moderately high volatility in the price of the underlying commodity C. To anticipate very low volatility in the price of the underlying commodity D. To anticipate moderate volatility in the price of the underlying commodity

Discussion 0

Correct Answer: A Vote an answer

Question 6

Click on the Exhibit Button to view the Formula Sheet. You and a dealer at another bank have an informal bilateral reciprocal arrangement to quote each other two-way prices.
During periods of high volatility, the other dealer refuses to quote to you. The Model Code states that:

A. The other dealer should act with honour, honesty and integrity. B. All of the above. C. Such arrangements are not in any way enforceable or binding. D. It is a purely matter for your two institutions.

Discussion 0

Correct Answer: D Vote an answer

Question 7

Click on the Exhibit Button to view the Formula Sheet. Deliberately inputting incorrect big figures into an electronic dealing platform is:

A. Not an uncommon practice and something which professional dealers should be able to guard against. B. Technically impossible on electronic platforms C. Not good practice. D. A criminal offence.

Discussion 0

Correct Answer: C Vote an answer

Question 8

Click on the Exhibit Button to view the Formula Sheet. Gambling or betting amongst market participants has obvious dangers and:

A. Should be strongly discouraged. B. Should be forbidden. C. Should be monitored by management. D. All of the above.

Discussion 0

Correct Answer: A Vote an answer

Question 9

Click on the Exhibit Button to view the Formula Sheet.
For which of the following reasons is the extension of forward contracts at non-current rates is discouraged:
i.These could be used to conceal profit or losses.
ii.These could be used to perpetrate fraud.
iii.These could result in an unauthorised extension of credit.
iv.These could result in confusing settlement instructions.

A. (i), (ii) & (iii). B. (i), (ii), (iii), & (iv). C. none of the above. D. (i) & (iii).

Discussion 0

Correct Answer: A Vote an answer

Question 10

Click on the Exhibit Button to view the Formula Sheet. You have received a gift from a good friend who also happens to be your USD/YEN broker. Under such circumstances, the Model Code recommends that you should:

A. Always decline gifts. B. Give the gift to charity. C. Report the gift to management. D. Keep the gift.

Discussion 0

Correct Answer: C Vote an answer