3I0-012

3I0-012 practice questions, page 4 of 30, with answer review and explanations.

Question 16

The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR 10,000,000.00 nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00, with no initial margin. The Repurchase Price is:

  1. EUR 10,000,500.00
  2. EUR 10,000,486.11
  3. EUR 11,260,563.00
  4. EUR 11,260,547.36

Question 17

The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR 10,000,000.00 million nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00. If you have to give an initial margin of 2%, the Repurchase Price is:

  1. EUR 11,035,336.41
  2. EUR 11,035,351.74
  3. EUR 11,039,752.32
  4. EUR 11,039,767.65

Question 18

A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000.00 of this bond, what would be the cost of borrowing against it in the repo market?

  1. GBP 7,551.37
  2. GBP 6,544.52
  3. GBP 5,537.67
  4. GBP 1,006.85

Question 19

If EUR/USD is quoted to you as 1.3050-53, does this price represent?

  1. The number of EUR per USD
  2. The number of USD per EUR
  3. Depends on whether the price is being quoted in Europe or the US
  4. Depends on whether the price is being quoted interbank or to a customer

Question 20

The seller of a EUR/RUB NDF could be:

  1. a potential buyer of EUR against RUB
  2. speculating on an appreciation of the Russian Rouble
  3. expecting rising EUR/RUB exchange rates
  4. a seller of Russian Rouble