QUESTION: 281 Topic: 3, Volume C

In a plain vanilla interest rate swap, the “fixed-rate payer”:

has established the price sensitivities of a longer-term fixed-rate liability and a floating-rate asset
has established the price sensitivities of a longer-term fixed-rate asset and a floating-rate liability
receives fixed in the swap
pays floating in the swap

Answer(s): A

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QUESTION: 282 Topic: 3, Volume C

All prices quoted by brokers should be taken to be:

under reference
firm, but not necessarily in marketable amounts
firm, unless otherwise qualified
merely indicative

Answer(s): C

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QUESTION: 283 Topic: 3, Volume C

What should a broker do if his quoted price is hit simultaneously by several dealers for a total amount greater than that for which the price concerned was valid?

allot the amount for which the price is valid pro rata amongst some principals in accordance with the amount proposed by each and inform the other dealers that “nothing was done”
decide which principals he will allot the amount for which the price is valid and inform the other dealers that “nothing was done”
evenly allocate the amount for which the price is valid amongst all the principals and inform all the relevant dealers
apportion the amount for which the price is valid pro rata amongst all the principals concerned in accordance with the amount proposed by each and inform all the relevant dealers

Answer(s): D

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QUESTION: 284 Topic: 3, Volume C

Under the Model Code, if a broker shouts “done” or “mine” at the very moment a dealer shouts “off”:

No deal is done and the broker should inform both counterparties accordingly.
The deal is done and the broker should inform both counterparties accordingly.
The matter should be resolved in consultation with senior management of the 3 institutions.
The ACI’s Committee for Professionalism will investigate and advise accordingly.

Answer(s): B

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Free 3I0-012 Exam Braindumps (page: 71)

QUESTION: 281 Topic: 3, Volume C

QUESTION: 282 Topic: 3, Volume C

QUESTION: 283 Topic: 3, Volume C

QUESTION: 284 Topic: 3, Volume C