3I0-012

3I0-012 practice questions, page 24 of 30, with answer review and explanations.

Question 116

If spot NZD/CHF is quoted to you as 0.7406-09. How many NZD would you receive in exchange for CHF 5,000,000.00 if you dealt on the price?

  1. 3,704,500.00
  2. 6,748,549.06
  3. 3,703,000.00
  4. 6,751,282.74

Question 117

You quote the following rates to a customer: Spot GBP/CHF 1.4535-45 6MGBP/CHF swap 46/41 At what rate do you sell GBP to a customer 6-month outright?

  1. 1.4494
  2. 1.4499
  3. 1.4504
  4. 1.4586

Question 118

You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10,000,000.00 interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 4.95%. You expect 6-month LIBOR in 6 months to fix at 5.25%, in 12 months at 5.35% and in 18 months at 5.40%. What do you expect the net settlement amounts to be over the next 2 years? Assume 30-day months.

  1. Pay 250.00, receive 1,250.00, receive 1,750.00, receive 2,000.00
  2. Receive 250.00, pay 1,250.00, pay 1,750.00, pay 2,000.00
  3. Pay 2,500.00, receive 12,500.00, receive 17,500.00, receive 20,000.00
  4. Receive 2,500.00, pay 12,500.00, pay 17,500.00, pay 20,000.00

Question 119

You sold a JPY 500,000,000 1x12 FRA at 0.35%. The settlement rate is 11-month (334-day) JPY LIBOR, which is fixed at 0.4450%. What is the settlement amount at maturity?

  1. You pay JPY 440,694
  2. You receive JPY 440,694
  3. You pay JPY 438,882
  4. You receive JPY 438,882

Question 120

A Eurodollar futures price of 99.685 implies:

  1. A forward-forward rate of 0.685%
  2. A forward-forward rate of 0.315%
  3. Current 3-month LIBOR of 0.6850%
  4. Current 3-month LIBOR of 0.3150%