If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:

A.

the value date of the financial centre that is open

B.

the next business day of the financial centre which is closed

C.

the next business day when both New York and Tokyo are open

D.

the previous business day when both New York and Tokyo are open

The seller of a put option has:

A.

Substantial opportunity for gain and limited risk of loss

B.

Substantial risk of loss and substantial opportunity for gain

C.

Limited risk of loss and limited opportunity for gain

D.

Substantial risk of loss and limited opportunity for gain

Which of the following is true?

A.

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

B.

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

C.

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

D.

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

The use of standard settlement instructions (SSI’s) is strongly encouraged because:

A.

it reduces operational risk

B.

it splits differences arising from failed settlement between the two counterparties

C.

it removes the need for sending out SWIFT confirmations

D.

the use of SSI’s secures the trading on more secure platforms

If a dealer has a 6-month USD asset and a 3-month USD liability, how could he hedge his balance sheet exposure in the FRA market?

A.

Buy 3x6

B.

Sell 3x6

C.

Buy 0x6

D.

Sell 6x9

If spot AUD/USD is quoted to you as 1.0420-25 and 1-month forward AUD/USD is quoted to you as 28/23, at what rate can you buy USD 1-month outright?

A.

1.0448

B.

1.0402

C.

1.0397

D.

1.0392

A CD with a face value of EUR 10,000,000.00 and a coupon of 3% was issued at par for 182 days and is now trading at 3.10% with 120 days remaining to maturity. What has been the capital gain or loss since issue?

A.

-EUR 52,161.00

B.

-t-EUR 47,839.00

C.

EUR 3,827.67

D.

Nil

Which type of repo is the most risky for the buyer?

A.

Delivery repo

B.

HIC repo

C.

TO-party repo

D.

There is no real difference

Voice-brokers in spot FX act as:

A.

Proprietary traders

B.

Market-makers

C.

Matched principals

D.

Agents

Which one of the following statements is incorrect? Hedge accounting of an existing position no longer applies when:

A.

the trader acquires additional exposure in the hedged item.

B.

the hedging instrument is sold, terminated or exercised.

C.

the hedged item is sold or settled.

D.

a hedge fails the effectiveness test