Answer Happy

Selling a FRA has the same interest rate exposure as:
A. Opening a positive gap
B. Going over-borrowed
C. Making a forward-forward loan
D. Taking a forward-forward deposit

Answer : C


In interbank trading, if a dealer is calling off at the same time as the broker is hitting a price:
A. no transaction should be concluded and the broker should inform both counterparties accordingly
B. a transaction should be concluded and the broker should inform both counterparties accordingly
C. the dealer has the choice of either concluding the transaction or not
D. the broker decides whether the transaction should be concluded or not

Answer : B



EUR/USD is 1.3080-83 and EUR/CHF is 1.2160-63. What price would you quote to a customer who wishes to sell CHF against USD?
A. 1.0759
B. 0.9299
C. 1.5909
D. 0.9295

Answer : B



A Eurodollar futures price of 99.685 implies:
A. A forward-forward rate of 0.685%
B. A forward-forward rate of 0.315%
C. Current 3-month LIBOR of 0.6850%
D. Current 3-month LIBOR of 0.3150%


Answer : B



Who takes the counterparty risk on the seller in a to-party repo?
A. The buyer
B. The to-party agent
C. A third-party guarantor
D. A central clearing counterparty


Answer : A