The seller of a call 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

What is the ISO code for the currency of China?

A.

CHY

B.

CNR

C.

CHR

D.

CNY

You buy a 30-day 4% CD with a face value of GBP 20,000,000.00 at par when it is issued.
You sell it in the secondary market after 10 days at 4.05%.
What is your holding period yield?

A.

4.05%

B.

3.891%

C.

3.838%

D.

1.946%

A 6-month (182-day) investment of CAD 15,500,000.00 yields a return of CAD 100,000.00.What is the rate of return?

A.

1.32%

B.

1.29%

C.

1.28%

D.

0.65%

Repo is said to have “double indemnity” due to the creditworthiness of the counterparty
and:

A.

A written legal agreement between the parties

B.

The oversight of the transaction by the custodian of the collateral

C.

The creditworthiness of the collateral

D.

The right of close-out and set-off in an event of default

If spot NZD/CHF is quoted to you as 0.7406-09. How many NZD would you receive in
exchange for CHF 5,000,000.00 if you dealt on the price?

A.

3,704,500.00

B.

6,748,549.06

C.

3,703,000.00

D.

6,751,282.74

In trade confirmation, which one of the following statements about “matching” is correct?

A.

matching should be performed by no later than the day after trading day

B.

matching processes are manual and may not be automated

C.

matching should be performed as soon as possible upon receipt of the confirmation

D.

confirmation matching should be a post-settlement workflow activity

You and a dealer at another bank have a verbal bilateral reciprocal arrangement to quote each other two-way prices. During periods of high volatility, the other dealer refuses to quote to you. What does the Model Code say about this situation?

A.

The other dealer is bound to reciprocate.

B.

This is not in any way an enforceable or binding commitment.

C.

The Model Code does not comment on dealing reciprocity.

D.

It is common market practice to suspend reciprocity in periods of high volatility.

If GBP/USD is 1.5350-53 and USD/JPY is 97.50-53, what is GBP/JPY?

A.

149.66-74

B.

149.69-71

C.

63.52-53

D.

63.51-54

What does the Model Code recommend in respect of prices and orders made on electronic trading platforms?

A.

They must be posted with a clear intent to be tradable.

B.

They must be identified as indicative rates only.

C.

. They must be posted subject to later credit line approval.

D.

They need not be posted in an appropriate trading style.