ACI 3I0-012 - ACI Dealing Certificate Exam

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Total 740 questions

A put option is ‘out-of-the-money’ if:

  • A. Its strike price is higher than the current market price of the underlying commodity
  • B. If the current market price of the underlying commodity is higher than the strike price of the option
  • C. Its strike price is equal to the current market price of the underlying commodity
  • D. If the current market price of the underlying commodity is lower than the strike price of the option


Answer : B

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


Answer : C

A “time option” is an outright forward FX transaction where the customer:

  • A. has the option to fulfill the outright forward or not at maturity
  • B. may freely choose the maturity, given a 24-hour notice to the bank
  • C. can choose any maturity within a previously fixed period
  • D. may decide to deal at the regular maturity or on either the business day before or after


Answer : C

The Market Segmentation hypothesis suggests that the yield curve bends at some point along its length because:

  • A. Investors have less appetite for longer-term investments
  • B. Borrowers prefer to borrow long-term but lenders prefer to lend short-term
  • C. Different types of institution tend to specialize in different maturity ranges
  • D. The risk premium becomes significant only at longer maturities


Answer : C

Which statement about modern matched-maturity transfer pricing in banks is correct?

  • A. It is now a widely accepted standard that banks should use a single representative transfer price across the entire maturity spectrum.
  • B. Modern matched-maturity pricing systems include an additional liquidity surcharge that is specifically applied to more liquid short maturities.
  • C. Matched-maturity transfer prices should represent a weighted average cost of capital that incorporates the cost of equity into the cost of borrowed funds.
  • D. Modern matched-maturity systems differentiate transfer prices by the maturity of the commitment and also apply a marginal funding cost perspective.


Answer : D

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Total 740 questions