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Vendor: ACI
Exam Code: 3I0-012
Exam Name: ACI Dealing Certificate
Certification: ACI Certifications
Total Questions: 740 Q&A ( View Details)
Updated on:
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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?
A. GBP 7,551.37
B. GBP 6,544.52
C. GBP 5,537.67
D. GBP 1,006.85
A bank quotes a spot rate that is verifiably incorrect and deviates substantially from the prevailing market rate.
A. you should hit the price and hold the bank to the quoted incorrect rate, as the quoted party is entitled to hold the quoting party to an erroneous rate
B. you should ask the dealer to check his price, as it is highly unethical for one party to hold another to an erroneously agreed rate
C. you should point out the mistake and split the difference
D. you should keep on dealing with this bank until the mistake is rectified
You deal over the phone with a counterparty. The subsequent confirmation differs from the terms agreed verbally. What is the result?
A. The confirmation takes precedence as it is a written contract.
B. The matter will have to be submitted to arbitration in order to establish the mutual intent of the parties.
C. It depends on local law.
D. The verbal agreement is binding.
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