A US security yields 7% on an annually-compounded bond basis. What is the equivalent annually- compounded money market yield?

A.

7.09%

B.

7.03%

C.

6.90%

D.

6.95%

What happens if an instruction remains unmatched and/or unsettled through CLS Bank?

A.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trades outside of CLS Bank on a net basis.

B.

If there is only one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally decide to settle the trade outside of CLS Bank on a net basis.

C.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trade outside CLS Bank on a gross basis.

D.

If there is more than one FX trade with a single counterparty to settle in the identical
currencies, then either side can unilaterally instruct the CLS Bank to settle the trades.

If you are trading spot on an ATS (Automated Trading System) and see a price for
EUR/USD of
1.3050-53. If you hit the button marked “YOURS”, what have you done?

A.

Bought EUR at 1.3053

B.

Bought USD at 1.3053

C.

Sold EUR at 1.3050

D.

Sold USDatl.3050

You are quoted the following market rates:
Spot EUR/USD 1.3150
3M (92-day) EUR 0.20%
3M (92-day) USD 0.44%
What is 3-month EUR/USD?

A.

1.3159

B.

1.3158

C.

1.3142

D.

1.3230

What is the ISO code for the Argentine peso?

A.

ARP

B.

ARS

C.

ARA

D.

AED

It is June. You are over-borrowed from October to January on your deposit book. How would you hedge using FRAs?

A.

Sell 3x6

B.

Buy 3x6

C.

Sell 4x7

D.

Buy 4x7

An Overnight Indexed Swap (OIS) is:

A.

A fixed-floating money market swap in which the floating rate is an overnight index fixed periodically over the term of the swap

B.

A fixed-floating money market swap in which the floating rate is the mean of the
overnight index over the term of the swap

C.

A fixed-floating money market swap in which the floating rate is an overnight index compounded daily

D.

A floating-for-floating rate swap in different currencies in which both floating rates are overnight indexes compounded daily

You are quoted spot USD/NOK 5.7220-28 and USD/SEK 6.3850-58, at what price can you
buy NOK against SEK?

A.

0.8963

B.

1.1157

C.

1.1159

D.

1.1160

Spot EUR/USD is 1.3050-53 and EUR interest rates are lower than USD interest rates.
Would you expect the forward points for EUR/USD to be

A.

added to spot

B.

subtracted from spot

C.

a negative value

D.

Insufficient information to decide

If spot GBP/CHF is quoted 1.4275-80 and the 3-month forward outright is 1.4254-61, what
are the forward points?

A.

19/21

B.

2.1/1.9

C.

21/19

D.

0.21/0.19