3I0-012 Exam Dumps - ACI Dealing Certificate

should be assumed to have zero duration

should be treated like other instantly variable rate liabilities, such as overnight money market borrowing.

should be assumed to have a low correlation with money market reference rates

represent a minor contributor to interest rate risk and can safely be disregarded

Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.

Paying a fixed rate of 4.12% per annum on an actual/actual basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.

Paying a 5-year euro deposit and receiving a rate of interest of 4.12% on an actual/360 basis. Taking a 5-year euro deposit and paying a rate ol interest of 4.12% on an actual/360 basis.

The amount of the deal exceeds EUR 5 million.

The local regulator or central bank declines to intervene.

Litigation has already commenced.

At the request of one of the counterparties.

Buy USD spot, and buy and sell a 3-month EUR/USD FX swap

Sell EUR/USD in the spot market, borrow EUR for 3 months and lend USD for 3 months

Sell a 3-month EUR/USD outright forward

Any of the above

6-month AUD rates are higher than 6-month NZD rates

6-month AUD rates are lower than 6-month NZD rates

Spot AUD/NZD will be higher by approximately 170 points in 6 months

The AUD yield curve is positive, whilst the NZD curve is negative

SEK interest rates are higher than NOK interest rates

NOK interest rates are higher than SEK interest rates

NOK interest rates are higher than USD interest rates

SEK interest rates and NOK interest rates are converging

The dealers have good track records in their dealing both for the institution and for themselves.

There has been no previous conflicts of interest in the dealing room.

There is a clearly laFd down policy.

The dealers see no conflict of Interest in such dealing.

CDS are used to recover funds from defaulted swap counterparties.

CDS provide protection against specified credit events to the party receiving the CDS premium payments.

CDS provide protection against the default of the trade counterparty that buys the CDS.

CDS provide compensation to the protection buyer, should a specified credit event occur to a third party entity.