The vega of an option is:

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The vega of an option is:
A. The sensitivity of the option value to changes in interest rates
B. The sensitivity of the option value to changes in implied volatility
C. The sensitivity of the option value to changes in the time to expiry
D. The sensitivity of the option value to changes in the price of the underlying

Answer : B


The major risk to the effectiveness of netting is:
A. Credit risk
B. Settlement risk
C. Liquidity risk
D. Legal risk

Answer : D


If the value date of a forward USD/JPY transaction is declared a holiday in either New York or Tokyo, the correct value date will be:
A. the value date of the financial centre that is open
B. the next business day of the financial centre which is closed
C. the next business day when both New York and Tokyo are open
D. the previous business day when both New York and Tokyo are open

Answer : C


When do bank participants have a duty to make absolutely clear whether the prices they are quoting are firm or merely indicative?
A. only if they are dealing with brokers
B. only if dealing on an e-trading platform
C. only if they are dealing in non-marketable amounts
D. always

Answer : D


How long does the Model Code recommend that tapes and other records of dealers/brokers be kept?
A. at least two months
B. one year
C. up to one month
D. at least three months

Answer : A