Quiz Summary
0 of 11 Questions completed
Questions:
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
Results
Results
0 of 11 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Categories
 Not categorized 0%
 1
 2
 3
 4
 5
 6
 7
 8
 9
 10
 11
 Current
 Review
 Answered
 Correct
 Incorrect

Question 1 of 11
1. Question
Read the following statements and choose the correct option:
Statement 1: The agreement in an OTC derivatives transaction is called a confirm.
Statement 2: swap rate is the average of the all the bid quotes.
CorrectIncorrect 
Question 2 of 11
2. Question
Bank X, is an US Bank and Bank Y, is a European Bank. Both have entered into a fixedfixed currency swap. Bank X has paid principal amount of 150M USD and Y pays 100M Euros to Bank X.
Interest paid by X to Y is 5% and receives 4% annually. Determine value of currency swap for X, which has remaining 2 years. Assuming yields in US & Europe are 2% and 3%. Spot exchange rate is 1.4 USD/ 1 EUR.
CorrectIncorrect 
Question 3 of 11
3. Question
A $10 million notional swap that pays floating rate based on 6month LIBOR and receives 5% fixed rate semiannually. The swap has a remaining life of 15 months with pay dates as 3,6 & 15 months. Spot LIBOR rates are as follows: 3 months at 5.2%, 9 months at 5.5% and 15 months at 5.8%. LIBOR of last payment was 7%. Calculate value of swap to the fixed rate payer using FRA.
CorrectIncorrect 
Question 4 of 11
4. Question
A $10 million notional swap that pays floating rate based on 6month LIBOR and receives 5% fixed rate semiannually. The swap has a remaining life of 15 months with pay dates as 3,6 & 15 months. Spot LIBOR rates are as follows: 3 months at 5.2%, 9 months at 5.5% and 15 months at 5.8%. LIBOR of last payment was 7%. Calculate value of swap to the fixed rate payer
CorrectIncorrect 
Question 5 of 11
5. Question
Which swaps can have both legs of swap as floating?
CorrectIncorrect 
Question 6 of 11
6. Question
Which swaps can be used to convert to transform from fixed/floating to an indexbased returns?
CorrectIncorrect 
Question 7 of 11
7. Question
Magnitude of potential loss in swaps is ______________ when compared to loss on debt defaults?
CorrectIncorrect 
Question 8 of 11
8. Question
Which of the following is inaccurate about currency swaps?
CorrectIncorrect 
Question 9 of 11
9. Question
At what rates are swap cash flows discounted?
CorrectIncorrect 
Question 10 of 11
10. Question
Swaps are similar to forwards, except?
CorrectIncorrect 
Question 11 of 11
11. Question
Company Y has a liability of $800M with a paying term of 20 years and payable yearly. Interest rate on loan is LIBOR+1%. Company wants to bring in certainty in terms of amount to be paid every year and decides to enter into a swap. Which swap could be the best option for this purpose?
CorrectIncorrect