QUESTION: 69 Topic: 1, Volume A

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?

Hybex should become a payer of a fixed rate on a swap against receipt of LIBOR.
Hybex should become a receiver of a floating rate on a swap against payment of a fixed rate
Hybex should become a receiver of a fixed rate on a swap against payment of LIBOR D.
Hybex should become a receiver of a floating rate on a swap against payment of LIBOR

Answer(s): C

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QUESTION: 70 Topic: 1, Volume A

Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?

minimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%
minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%
minimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%
minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%

Answer(s): D

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QUESTION: 71 Topic: 1, Volume A

Responsibility for the activities of all personnel engaged in dealing (both dealers and support staff) for both principals and brokers lies with:

the market supervisor
the national ACI association
the management of such organizations
the central bank

Answer(s): C

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QUESTION: 72 Topic: 1, Volume A

Which Greek letter is used to describe the ratio of change in the option price compared with change in the price of the underlying instrument, when all other conditions are fixed?

beta
gamma
delta
theta

Answer(s): C

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QUESTION: 69 Topic: 1, Volume A

QUESTION: 70 Topic: 1, Volume A

QUESTION: 71 Topic: 1, Volume A

QUESTION: 72 Topic: 1, Volume A