The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR 10,000,0

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The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%.
As collateral, you sell EUR 10,000,000.00 nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00, with no initial margin. The Repurchase Price is:
A. EUR 10,000,500.00
B. EUR 10,000,486.11
C. EUR 11,260,563.00
D. EUR 11,260,547.36

Answer : C


The mid-rate for USD/CHF is 0.9300 and the mid-rate for NZD/USD is 0.8560. What is the mid rate for NZD/CHF?
A. 0.7961
B. 1.0864
C. 1.7860
D. 1.2561

Answer : A


Which one of the following statements about interest rate movements is true?
A. An upward parallel shift of interest rates will cause a loss of income if the rate-sensitivity of a banks liabilities is higher than the rate-sensitivity of its assets.
B. A bank will lose income if it has more rate-sensitive liabilities than rate-sensitive assets.
C. Falling interest rates will always result in mark-to-market profits on short positions in fixed rate securities.
D. Rising interest rates can result in mark-to-market losses on fixed-rate assets.

Answer : D


The exercise price in an option contract is:
A. The price of the underlying instrument at the time of the transaction
B. The price at which the transaction on the underlying instrument will be carried out if and when the option is exercised
C. The price the buyer of the option pays to the seller when entering into the options contract
D. The price at which the two counterparties can close-out their position

Answer : B


Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?
A. minimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%
B. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%
C. minimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%
D. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%


Answer : D