ACI--Operations-Certificate-(3I0-010).pdf - ACI 3I0-010 ACI...

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3I0-010 ACI ACI - Operations Certificate
Answer: D QUESTION: 325 A European-style option is: A. an option traded in EUR B. an option which can be exercised at any time between the purchase and expiration date C. an option with premium payable only on its expiry date D. an option which can be exercised only at maturity Answer: D QUESTION: 326 What is the "spread" in an interest rate swap (IRS)? A. the interest rate differential between the fixed and floating leg of the swap B. the brokerage fee for an interest rate swap transaction C. the payment made when a swap is terminated D. the difference between the swap rate and the benchmark government yield Answer: D QUESTION: 327 The writer of an options contract: A. bears a risk limited to the premium paid B. bears a substantial risk C. bears a risk limited to the premium received D. bears no risk Answer: B QUESTION: 328 Settlement prices on futures contracts are 103
A. official prices calculated by the exchange at the close of trading for the purpose of making margin calculations B. official prices calculated by a panel of central banks C. official prices calculated by the central bank where the stock exchange is located D. never used Answer: A QUESTION:

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