What is the meaning of “under reference” in the terminology of trading?

[answerhappygod]

What is the meaning of “under reference” in the terminology of trading?
A. a term the quoting dealer uses to caution the receiver of the quote that the price may have to be re-quoted at the receivers risk
B. the qualification that the rate quoted in the market may no longer be valid and requires confirmation before any trades can be agreed upon
C. the statement that the rates quoted by the broker are for indication only
D. an acknowledgement by the dealer receiving the quote that the rate may have to be re- quoted at the receivers risk

Answer : B



What happens when a coupon is paid on bond collateral during the term of a classic repo?
A. Nothing
B. A margin call is triggered on the seller
C. A manufactured payment is made to the seller
D. Equivalent value plus reinvestment income is deducted from the repurchase price

Answer : C



Which party usually takes an initial margin in a classic repo?
A. The buyer
B. The seller
C. Neither
D. Both

Answer : A



Which of the following is true?
A. The 3-month EURODOLLAR futures contract has a basis point value of USD 50.00 and a face value of USD 1,000,000.00
B. The 3-month EURIBOR futures contract has a a basis point value of EUR 12.50 and a face value of EUR 500,000.00
C. The 3-month Sterling (SHORT STERLING) futures contract has a a basis point value of GBP 12.50 and a face value of GBP 500,000.00
D. The 3-month Euro Swiss Franc (EUROSWISS) futures contract has a a basis point value of CHF 50.00 and a face value of CHF 2,000,000.00

Answer : C



Your agent bank accepts your back-valuation request for 1 day on an amount of EUR
50,000,000.00. EONIA is 0.375% and the ECB marginal lending facility rate is 1.50%.
Applying conventional administration fees, how much will this be charged?
A. EUR 620.83
B. EUR 868.06
C. EUR 968.06
D. EUR 2,183.33


Answer : C