3I0-012

3I0-012 practice questions, page 15 of 30, with answer review and explanations.

Question 71

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

  1. the market supervisor
  2. the national ACI association
  3. the management of such organizations
  4. the central bank

Question 72

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?

  1. beta
  2. gamma
  3. delta
  4. theta

Question 73

When banks transact FX swaps, the spot price should be determined:

  1. anytime after the swap is transacted
  2. before the swap is transacted
  3. immediately after the swap is transacted
  4. no less than 24 hours after the completion of the swap

Question 74

Which of the following statements is true?

  1. Prices quoted by brokers should be taken to be firm in marketable amounts unless otherwise qualified
  2. Prices quoted by brokers should be taken to be indicative in marketable amounts unless otherwise qualified
  3. Prices quoted by brokers should be taken to be firm in amounts of 1,000,000.00 of the quoted currency unless otherwise qualified
  4. Prices quoted by brokers should be taken to be indicative in amounts of 1,000,000.00 of the base currency unless otherwise qualified

Question 75

A broker offers a dealer a financial incentive in the form of a price reduction to the previously agreed brokerage arrangements between the firms.

  1. This is considered as a normal discount for bulk business.
  2. The offer should be agreed only by directors or senior management on each side and should be recorded in writing.
  3. The offer should be expressly approved by both the individuals concerned and clearly recorded in writing.
  4. The Model Code strongly discourages such practices.