Question 1

What is a long strangle option strategy?

Options :

A : A long call option + short put option with higher strike price than the call option

B : A long call option + long put option with a lower strike price than the call option

C : A short call option + short put option with a higher strike price than the call option

D : A short call option + short put option with a lower strike price than the call option

Answer: B

Question 2

When differences in payment arise because of errors in the payment of funds:

Options :

A : no party involved can be enforced to contribute to achieve an equitable resolution to the problem

B : claims are calculated on the full principal amount of the failed payment with the interest rate imposed by the injured party

C : claims should be made for the costs incurred by the injured party and include all administration costs

D : no market participant should be unjustly enriched or injured by the action/error of another market participant

Answer: D

Question 3

When a broker calls off" at the very instant a dealer "hits" the broker's price:"

Options :

A : The transaction should not be concluded.

B : The broker decides whether or not the deal is done.

C : ACI-s Committee for Professionalism will decide whether the transaction should be concluded.

D : The transaction should be concluded.

Answer: A

Question 4

Forward points represent:

Options :

A : The expected appreciation or depreciation of the quoted currency

B : The expected appreciation or depreciation of the base currency

C :

Solely, the interest rate differential between two currencies

D : Largely, the interest rate differential between two currencies

Answer: D

Question 5

If EUR/USD is 1.1025-28 and the 6-month swap is 112.50/113, what is the 6-month outright price?

Options :

A : 1.11375-1.1141

B : 1.09125-1.0915

C : None of these

D : 1.1380-1.11405

Answer: A