Question 1

Dealers are authorized to deal:

Options :

A :

anywhere, even away from their own dealing premises

B : after-hours, but only from their private residence

C : after-hours, but only if listed as such by management

D : away from their broker-s dealing premises

Answer: C

Question 2

Click on the Exhibit Button to view the Formula Sheet, If GBP/USD is 1.5350-53 and USD/JPY is 106.50-53, what is GBP/JPY?

Options :

A : 69.36-39

B : 163.48-56

C : 163.51-52

Answer: B

Question 3

An 'at-the-money' call option:

Options :

A : Costs less than an 'out-of-the-money' call option

B : Costs the same as an 'in-the-money' put option

C : Costs more than an 'in-the-money' call option

D : Costs more than an 'out-of-the-money' call option

Answer: D

Question 4

Where answer phone equipment is used for reporting and recording of off-premises transactions, it should be:

Options :

A : Secured so that reported transactions cannot be erased without senior management approval.

B : Secured by recordings that are stored for a suitable period.

C : On a number located in the office of the internal auditor.

D : On an special number known only to the chief dealer.

Answer: A

Question 5

You quote a price to a broker on EUR 100 million. Your price is hit for EUR 50 million. What does the Model Code say about this situation?

Options :

A : You have a right to qualify your quotes in terms of amounts, if you do so when you make the price.

B : You have a right to qualify your quotes in terms of amounts, once you have discovered the name of the counterparty for credit reasons.

C : You have a right to qualify your quotes in terms of amounts.

D : You have a right to qualify your quotes in terms of amounts, provided the amounts are marketable.

Answer: A

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