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3I0-013 Exam Dumps : ACI Operations Certificate challenging

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ACI Operations Certificate challenging Questions and Answers

Question 1

In FX swaps, the rate of the spot leg:

Options:

A.

May be freely chosen by the quoting party as long as both parties agree on it

B.

Must always be fixed immediately at the current mid rate, to reflect the rate at the time the deal was made

C.

Should be fixed immediately within the current spread, to reflect current rates at the time the transaction was made

D.

Should always be fixed off the current spread in order not to be mistaken for a spot FX transaction

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Question 2

If a trade is to settle in a CCP or CLS:

Options:

A.

The parties may agree verbally not to exchange confirmations

B.

A party can unilaterally eliminate confirmations for these trades

C.

It is left to the discretion of each party to send a confirmation or not

D.

The parties may agree in writing not to exchange confirmations

Question 3

In error, your dealer enters a trade whereby he buys GBP 8,000,000.00 against USD at 1.5500, but manages to cover it at the same rate. When the initial mistaken trade is cancelled, however, the rate has since changed to 1.5200. What is the effect on P&L?

Options:

A.

Profit GBP 240,000.00

B.

Loss GBP 240,000.00

C.

Profit USD 240,000.00

D.

Loss USD 240,000.00