3I0-013

3I0-013 practice questions, page 13 of 16, with answer review and explanations.

Question 61

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

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

Question 62

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

Question 63

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

Question 64

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

Question 65

Which of these statements is correct?

  1. The strike price of a Bermudan option is an average.
  2. A Bermudan option can be exercised only on a few specific dates prior to expiration.
  3. A Bermudan option can be exercised at any time before its maturity date.
  4. A Bermudan option can be exercised only at maturity.