Free 3I0-012 Exam Braindumps (page: 78)

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If you lend for 3 months and borrow for 6 months, you may be said to:

  1. Be over-lent
  2. Have a negative gap
  3. Be exposed to higher interest rates
  4. Be over-borrowed

Answer(s): D



What is the purpose of a short straddle option strategy?

  1. To anticipate lower volatility in the price of the underlying commodity
  2. To anticipate moderately high volatility in the price of the underlying commodity
  3. To anticipate increasing volatility in the price of the underlying commodity
  4. To anticipate very high volatility in the price of the underlying commodity

Answer(s): A



The delta of an ‘at-the-money’ long put option is:

  1. Between -0.5 and -1
  2. -0.5
  3. Between +0.5 and +1
  4. +0.5

Answer(s): B



Which of the following both provide credit enhancement to a true-sale securitization?

  1. reserve account and third-party insurance
  2. subordinated tranches and creditworthiness of the originator
  3. creditworthiness of the originator and third-party insurance
  4. reserve account and interest rate hedging

Answer(s): A






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