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Correct Answer for the Question – How could he hedge his balance sheet exposure in the FRA market? is given below If a dealer has a 6-month USD asset and a 3-month USD liability, how could he hedge his balance sheet exposure in the FRA market? Buy 3×6 Sell 3×6 Buy 0x6D. Sell 6×9 Correct Answer … Read more
Correct Answer for the Question – A USD deposit traded in London between two German banks is cleared: is given below A USD deposit traded in London between two German banks is cleared: Wherever the parties agree In London In NewYorkD. In Frankfurt Correct Answer The Correct Answer for this Question is In NewYorkD. In Frankfurt … Read more
Correct Answer for the Question – What are the 6-month EUR/CHF forward points? is given below You are quoted the following market rates: spot EUR/CHF 1.1005 6M (180-day) EUR 3.45% 6M (180-day) CHF 1.25%What are the 6-month EUR/CHF forward points?ExplanationExplanation/Reference:[/showhide] 121 120 Correct Answer The Correct Answer for this Question is 121 Explanation The Question – … Read more
Correct Answer for the Question – Complete the following sentence. If a bank has an asset repricing in 6 months funded by a liability repriced in 3 months: is given below Complete the following sentence. If a bank has an asset repricing in 6 months funded by a liability repriced in 3 months: the bank would … Read more
Correct Answer for the Question – The Model Code stipulates that you have a right to qualify your quotes in terms of amounts: is given below The Model Code stipulates that you have a right to qualify your quotes in terms of amounts: if you do so when you make the price provided the amounts are … Read more
Correct Answer for the Question – Which type of repo is “double dipping” a risk? is given below In which type of repo is “double dipping” a risk? Delivery repo HIC repo To-party repo “Double dipping” is never a risk in any type of repo Correct Answer The Correct Answer for this Question is HIC repo … Read more
Correct Answer for the Question – The Liquidity Coverage Ratio imposed by Basel III requires a bank: is given below The Liquidity Coverage Ratio imposed by Basel III requires a bank: to keep enough highly liquid assets to cover its net liabilities for the next 10 days to guard against severe liquidity stress to keep enough … Read more
Correct Answer for the Question – Which of the following is not transferable? is given below Which of the following is not transferable? Euro certificate of deposit US Treasury bill CP Call deposit Correct Answer The Correct Answer for this Question is Call deposit Explanation The Question – Which of the following is not transferable? has … Read more
Correct Answer for the Question – The vega of an option is: is given below The vega of an option is: The sensitivity of the option value to changes in interest rates The sensitivity of the option value to changes in implied volatility The sensitivity of the option value to changes in the time to expiry … Read more
Correct Answer for the Question – In interbank trading, if a dealer is calling “off” at the same time as the broker is hitting a price: is given below In interbank trading, if a dealer is calling “off” at the same time as the broker is hitting a price: no transaction should be concluded and the … Read more
