If spot AUD/USD is quoted to you as 1.0420-25 and 1-month forward AUD/USD is quoted to you as 28/23, at what rate can yo

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If spot AUD/USD is quoted to you as 1.0420-25 and 1-month forward AUD/USD is quoted to you as 28/23, at what rate can you buy USD 1-month outright?
A. 1.0448
B. 1.0402
C. 1.0397
D. 1.0392

Answer : D



How many GBP would you have to invest at 0.55% to be repaid GBP 2,000,000.00
(principal plus interest) in 90 days?
A. GBP 1,997,253.78
B. GBP 1,997,291.34
C. GBP 1,997,287.67
D. GBP 1,997,250.00

Answer : B



Hybex Electrics is a highly rated company with a considerable amount of fixed rate liabilities and would like to increase the percentage of floating rate debt. Which of the following is the best course of action?
A. Hybex should become a payer of a fixed rate on a swap against receipt of LIBOR.
B. Hybex should become a receiver of a floating rate on a swap against payment of a fixed rate
C. Hybex should become a receiver of a fixed rate on a swap against payment of LIBOR D.
D. Hybex should become a receiver of a floating rate on a swap against payment of LIBOR

Answer : C



A 7% CD was issued at par, which you now purchase at 6.75%. You would expect to pay:
A. The face value of the CD
B. More than the face value
C. Less than the face value
D. Too little information to decide

Answer : B



Which of the following is not a negotiable instrument?
A. CD
B. FRA
C. BA
D. ECP


Answer : B