Free 3I0-013 Exam Braindumps (page: 17)

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Internationally, USD FRAs are settled with reference to which market rate?

  1. LIBOR
  2. FEDFUNDS
  3. LIBID
  4. EURIBOR

Answer(s): A



EURIBOR is a:

  1. Daily fixing of EUR interest rates within the EMU zone
  2. Daily fixing of EUR interest rates in London
  3. A rate used for the settlement of USD FRAs between European counterparties
  4. The official successor to LIBOR rates

Answer(s): A



An interest rate CAP can be defined as:

  1. A series of American call options on FRAs
  2. A series of European call options on FRAs
  3. A series of American put options on FRAs
  4. A series of European put options on FRAs

Answer(s): B



As to futures contracts:

  1. The maintenance margin is a predetermined fraction of initial margin
  2. The initial margin is a predetermined fraction of maintenance margin
  3. The maintenance margin represents the brokerage costs
  4. The maintenance margin represents management fees

Answer(s): A






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