008 ain test ume a selection of questions fron within the Topics requested. Poe ao1s on 19/03/2006 2:48:53 RL (Ce report hao boon saved ae €:\PROGRN PILES\WIRFOREXVUTEADTAO.TEF. Tt may be read wing Uo special Decryption wLiLity Hf thie ha Boon ded wader the terms of your Licence.) 21 MOM REPO RATE oF 5.25 7.C, TOT 1S BE AICI CONSIDERATION GODED) PAID ACROSS TO HON? ‘Option A: GBP 9,563,000 Option ‘Option Option selected Ue CONECT option - A: GF 9,504,000 ‘iitsal consideration (rounded) pai arrose i the dirty price = clean price of GIP 9,500,000 plus 54 days accrand interest (5.50 pe. om an = 81,369.06). ae this to a cash driven trado there 40 no margin (haireat) am Cho Clnal consideration 4¢ rounted to the mearest 2 + rorIc: Repos Catewiations ‘ption a: GBP 9,901,000, 00 Option B: GBP 40,000,000.00 ‘ptzon Ct GBP 9,622, 342,62 Option D: GRP 40,004,342. 62 selected which was DCUMC? ieee008 ainla "Repo amount ie GOP $,501,000 (the rouaded dirty price of the Gilt ani inteneet at 5.25 pic. dx payable in adition at maturity of the Repo 93 + PEC: Repos Caleatatione DEALER (HAMKET USER) REPOS USD 10 MILLION US TRERSURIES WITH A DIRTY PRICE OF 9,931, ‘Option a GHP 59,063.80 Option Bs Ga 24,509.47 option Cas? 59,000.00 ‘Option Ds Gap 22,599.45 Ow a ORD (31 BRS). TE ERD RICE UOTED HL selected the CORECY aption ‘maturity consideration is the initial consideration USD 9,581,008 plus interest ealewlated at 4.25 for 11 days ~ USD 25,062.00 4: Tone: Repos carewations RET VALE (2 COLLAUERGL, DOGS & DEALER NEED AGRINST USD 58 ROLLIN IN CASH IM A 9-DAY REVERSE READ RY A RATE OP 2.10 P. ‘option Option ‘tron Option D: USD $4,000,000 ee wes selected Ue CONECT option - D: USD 54,000,000 1H 5 = TOPIC: Repos Calewations AL GC REPO FOR GHUGR GOVERMENT BOWDS 15 QUOTED: 1.75 — $0 P.C. YOU SELL UR 10 MOLLEON 5.25 F.C. 2042 THM A VALUE OF EUR 14,260,000, 00 Option a: EUR 11,035,336.41 en ‘Option fae 14,090,259. 22 Option c: eum 11,030,267. 65 (Option Ds fae 14,095,251. 94Bitjuct the initial conrideration by the margin ratio of 1.02 (11,639,225.60 on which pant at pic: ie payable, intereot of 551.97 making (QUESTIO 6 + TOPIC: Repos Calewlat tone Hu veo EU 20 HALLO BURDS 4c. 200K UM A DERE HUGE 19,162,000 OH A 2 MONI (61 DAYS) EPO RATE A 3.25 PC, WAT 15 a xaTURITY (ption Ds MUR 90, 308,594.047 lintorration Notes se interest payable ie the inital consideration 19,162,000 X repo rate 3.25 p.c. X Mo. of aye 61 / 360 X 100 = 105,524.07 nating the (Question 7 : TORIC: Repos Calculations the dealer i able to charge 2.50 pic. mnnyin (haizewt) on a cash adance of GM 50,0 71.025 = USP 51,250,000.00. lauesrrim # : FTC: Reyes Calculationsfowstim & Repos Calculations JOT THETEAL RD IOMWETE COUCIDERRTION 1S TIVOLVED KK 9 DAY RERO GDP 50 ELTON Go COLLATERAL (THEASIRY ¢.00 7. Option A: GOP 50,002,291.76, GOP 50,140,247.57 200) aT ERIE OF 4.00 ‘Option B GaP 48,430, sr 48,469,998, 79 ‘Option C: GBP 50,000,090.08, cDP 50,015 955.79 ‘option D: GHP 48,332,191.78, GH 48,948,147.57 Hou eoloctom the CORRECT option — D: GBP AB,952,191.78, GHP 48,948, 147.97 (cr 50 nition with a eorcon price of 96.98 ean a clean price of GBF 48,450,000,00 plus 10 days accrued cowon (Treasury 6.60 p-c- 2008) — fab tz, 61.10 making the inttsal consideration (dirty price) @P 40,592,204. 10, Repo interest of GU 15,955.10 4x poyable a maturity making lauesrrim $ : yOFTC: Repos Calculations ‘Option A: USD 9, 615,065.50 ‘tion Option ‘aon Hou selected the CORBECT opta0n - D: USD 9,616,065.80 plus anterest calculated at 4.25 tor $1 days ~ 39,065.30 raking a total lawsrim 10 + YOFIC: Repos caicutataons ‘Option a: EUR 15,000.00 Ra MET 30 DAYS) EPO, RATE: 3.00 PC. TARE IS Hide Report008 ain information Notes ft 360) X repo rate 3.00 pic. XM. of days 30 / 360 X 400 = 22,905. (etre interest 4: rortc: Repos catewations 1S THE REPO ETUC A CASH DRIVERT 30 DRY REPO AE 4,50 P.C. ON GBF 10 MILLION & P.C. TREASURY 2009, 0M A FLAT BASIS VENDA DIRTY PRICE Option A: GBP 11,571,518.21 Option B: GBP 43,233.25 Option ¢ GBP 42,681.51 Option D: GBP 11,221, 641.51 fine correct option vas ¢: GBP 42,641.51 [the repo return (interest payable} om a Cash driven trade repo on GBF 10 million # p.c, Treasury 2009 on a flat basis with a dirty price of 10H 12 ; TOPIC: Repos Calculations SPOT A MEER PEDO OH 4.25 7.c. BSL 2006 IS QUOTED 2.35 — 2.58 P.C. YOV BUY BOHDS UITM X MOSKEY VILUE OF UR 5,295,5 SHAT 1S PM KERNEL ‘Option a: EUR 3,297,004.19 ‘Option BR 3,296, 905.23 Option c: EUR 3,2977075.09 ‘tion DR 3,297,005.86 rma SELL UE fou selected B which vas INCERIECT inforration Hotes + {you buy Ponds you are effecting a Reverse repo at the market hid of 2.35 p.c. The repurchase price 1s therefore EIR 5,297,005.86. lowesrian 13 : rorrc: Reyes Catewiations DERLER IS QUOTED 4.00" 3.025 P.C. BY TOE BRUKER FOR A 7 DAY GC REPO. 2 CUBRENTLY MOLDS GOP 10 XOLLIOH OF THE TRE 5: Fopon {MNDED DIEEFY PRICE GBP 9,650,000, 06) YOLK HRS GOW “SRECTAL” AMD TS'GLOTED 50 BP LOWR, WOE 15 THE INITIAL COWS tion A: GBP 9,650,000, 00, GBP 6,256.06ain BF 9,650, 100.00, GOP 6,236.06 BF 10,000,000.00, BF 6,477 selected the CORRECT option information Notes 3,650 400.00 45 the dirty price of the wont ant this i¢ the initial consideration of the repo. The rate for the special 48 50 4p lower 0.5 = 3.50 pcr)» Interest of GBF 6,477.80 As payable on the cash advance for the 7 days. 1: rortc: Repos catewations EPO PUR 20 MOLLTON BONDS 4 PC, 200K VID R DIRTY PRICE OF 19,162,000 OW A 2 MOMIDK (61 DAIS) FEO RANE AP 3,25, Option A IR 105,524.07 ‘ask 20,110, 138.09 1¢. WRN 1S HE TTEREST Option C: GBP 9,650,000.00, GBP 9,663, 560.14 Option D: GBP 9,650,000.00, GBP 9,663,411.47 He Repon fou selected the COREY aption ~ C: GBP $,650,000.00, GBP 9,663,ain GBP 9,650, 000.00 48 the aizty price of the Hont and this i¢ the initial consideration of the repo. Interest of GBP 415,860.44 4 payable on ithe cash advance for the Mt days making the naturity consideration GBP 9,663,800. 14 louesraom 16 + rortc: Repos catcwtations 15 TURSDAL, OME NARUET 15 OUTING SPOT ERY REPO GN TMB 3,25 F.C. BIND 2006 1.75-40 ‘Option Option ‘Option Option 1c. 7M MURCNRSE PRICE OF THE BONDS 1S HAR a 5,198, 901.93 ak 5,199, 208.32 fine correct option vas Rs FIR 5,798,981,93 fou exter into a S/N (1 day} repo as rarket user and deal at 1, 6. The repurchase consideration is therefore BUR 5,798, 981.43 onic: Repos calewations [ewe won we ces» PC, 200K TRADED ASR SHECIAL WNW A DIY PRICE OF 95.81 (ROUNDED) AY K 1 MOND HERO Rare ‘tion AP GBP 10, 001,369.86 q Option B: GB? 40,000,000 Option C= GBP 9,500,000 Option D: GBP 9,361,000 selected the COBHCT option - D: GBF 9,581,000 information Notes Whe initial consideration of a special (routed) paid across 1s the Wizty price = clean price of GAP 9,500,000 plus 51 days accrued interest (5.50 pc. on GBP 10,000,000 ~ 91,369.86). ks this 1s a cash driven trade there 1s no margin ¢hnivcut} and the final considevation 1s rowed OH scaeRepon | HE 10H 18 : TOPIC: Repos Calculations ‘DEMER QOEKET USER) BEDOS GBP 0 ROLLION UK GILTS TREASURE 5.50 PRLCH OUORED TW THE RINGER TS 4,25 — 4.00 Fac. ORT IS TM IVRSE FRYROLE Cw HS TRO? Option a: GBP 52,719.15ain on a rom (31 omEs). TE ‘maturity consideration is the initial consideration 9,5 plus interest calculated at 4.25 for 31 days ~ 34,583.47 making a total 10H 19 : TOPIC: Repos Calculations (CE (DMCIDING 30 DAYS. NCRED) OF BP 115.292 Option a: GBP 10,000,000.00 Option B: GBP 11,571,641. 50 Option ¢: GBP 4,324,518. 24 ‘Option D: GBP 11,529,000, 00 fou selected the COREY option ~ D: GBF 11,529, 100.00, fmitnal consideration of a Cash driven trade rey0 on GBP 18 million @ p.c. Treaswry 2089 on a flat hasis with a dirty price of GBP 11, 524,876.71 45 GBP 41,529, 000.00 (dirty price routed to tue decinal places, 119.29) Reyes Calewlations "IS RE? Option A: EUR 10,765,000.00, EUR 10,570,618.34 a 10,565, 510-42, UR 10,571, 160.05, Option ¢: EUR 10,765,503.42) EUR 10,975,075.64 Option D> ER 10,565,503.42, FAR 18,571, 153.03 He Repon fou selected the CORECT option ~ D: HR 18,565,503.42, BUR 19,571, 153.03008 ila! [inforration Hotes a fm 10,565,503.12 As the aty price of tke bond and thie ¢ the initial consideration of tke repo. Interest of 5,619.64 te due for the 7 days leash equivalent making the matwraty consideration FUR 18,571,153.08, (ouestiou 21 + TOPIC: Repos catewlations FA CAL, ARSTERDRL CRA AW LANDON HAD ASK GILT REPO PRICES FOR 7 DAK GC 5ND HE: QUOTES YOU 4.125 — 4.00 PLC. YOM AG LOOKING 10 LEND P18 POLLION ASH AGADIST 3 7.C. TREASURE 200 COLLATERIL AE A CLEMM PRICE OF 100.00 (0H 2 SEX ONAL DIVIONN Dare) DN A CASK DARA TIDE. war JINCTTAL, CONSIDERATAON 1S THOLVED AD WOKE INTENEST WILL, YOU REGIE ON CRS ADVAN? Option a: GBP 10,000,000, 7,910.36 Option B GHP 10,000,000, 2,177.72 Option c: GBP 40,0007000, 8020.33 ‘Option D: GBP 10,000,000, 2,672, 28 Hou selected the COMET option ~ D: GBF 18,000,000, 1,611.23 ithe tim way price quoted to you by Major bank is his bid - Offer for the security 3n a repo transaction. If you are looking to end cash you fuilt deal on the market mater's OFFER ~ buyins aud selling the GLILs UReretore entering Into a reverse repo at 4.00 p-c. The Anitial Fonsideration is the dirty price but the bonds are priced at. 100.08 on a cowon date therefore dirty price ~ clean price of GBP 10 rallien and jive daterest payable at maturity 2 7,671.25 (4.00 p.c- for 7 days). lawstiO 22 : TOPIC: Repos Calculations PROT DOTA CONSIDERATION DOES A DEALER RECEYE AGAINST GBP 50 MILLION °SPECIML” COLLATERAL, THENSURY 6.00 .C. 2005) Dn 3-DAY HEPO AT A JME OF 406 Pc. TE HME CLERW PREC 1S 96,90 RAD THERE ARE, 10 DAYS ACCED cOMPON? ‘Option a: GBP 50,082, 191.78 Option B: GBP 48,532,191. 78 Option ‘Option GBP 50, 000000. 00 Zz Hou selected the CORWECT aption Bs ae 48,532,191. 78 isan 50 milion with a screen price of 96.98 neans a clean price of GBP 41,450,000, (am 82,191.76 mabiny the initial Consideration (€47Ly price) GBP 18,552,191. 7 lus 18 days accrued comon (Treasury 6.00 p-c. 2004) ~ He Repon (OwSTION 23 : TOPIC: Repos Calculations Ps 10 ARG MME COURERPRY AM DMTPTAL, RCN E00 PC.008 ila! (OWSTION 23 : TOPIC: Repos Calewlations Ps 10 ARG MME COURERPRY AM DMTPTAL, RCN E00 PC. Option a: GBP 9,£00,000.00 ‘Option B GBP 10,000,000, 00 Option ¢: GBP 40,200,000, 00 Option D: GBP 9, 803,21, 57 Hou selected the COHECT option ~ ¢: GBF 18,200, 100.00, It as repocr the dealer is able to charge the counterparty a 2, 1 mavgin Qhizent) on a cash alvance of GBP 18, (OUSTION 24 : TOPIC: Repos Calewlations ANCIAL MARGIN HP 1.50 F.C. Option a: USD 50,750,000, 00 Option B USD 49,566,100. 80 Option c: USD 49,261,083. 24 ‘Option D: USD 50,000,000, 00 How selected & which vas INCRIECT linforration Notes He ae repocr the dealer ie charyed 1.50 p.c. margin (naixeut) on a cash atvance of USD 50, 50,000,000 7 1.015 ~ USD 49,261,083, 74, (ouesriom 25 + TOPIC: Repos catewlations FR DEALER REPS UY FUR 10,-965,903.42 OP NW 5.25 7.C. DAR 200K POR 7 DRS RR RATE OP 2.75 F.C. OORT ARE IME STARE A TOTAL PINRL CASH PLOWS — tion A EIR 10,565,000, 00, EIR 10,570,689.38 Option B: EUR 10,765,540.42) EUR 10,971, 160.03 Option C= EMR 10,565,503.42, EIR 18,575,075.68 Option D: EUR 10,765,503.42, EUR 10,971, 153.03 erm Hou eelected the CORBECT option ~ D: EUR 18,565,503.42, BUR 19,571,155.03008 ain ‘arance for the 7 days making the matarity consideration UR 10,571,153.03. 26 + ortc: Repos Catcuations DEAL REPOS (FE 3.25" FC. GERI HURDS 200K VTC R CLERN PREC OP 99.00. HERE: AME 15 DAYS HCCIUED ON AME COLATIRA. PE REPO AGREED 1S tion A IR 4,956,618. 08 Option B: EUR 5,000,000 ‘Option C= BR 4,950,000, 00 Option D: EUR 5,006,578. 08 selected tie CORRECT option - a: FUR 4,996,678.08 information Notes 14,956, 678.00 ie the @irty price of the out clean price 4,950 ‘Oks 15 the initial consideration of the repo. 27 + roric: Repos Catewations IMTS DOS DESLER FAY OM A) DA REO AGRINSY ARE 9 ROLLSON COLLANERGL AT A RARE OP 2.90 PC. TF ME TS CRED AN MOUETAL WARN OP Option A IR 8,630.18 Option B: EIR 8,750.00 Option C= IR 6,157.64 Option D: EIR 8,¢20.69 scelected the CORRECT option - Bs FUR 6,620.69 information Notes (rae vepoer the dealer 4¢ charged 4.50 p.c. margin (lalxeut) om a cash atvance of FUR 50,000,000 the value of collateral recetved wll be 50,000,000 7 1.015 ~ MUR 49,261,083, 14 noaning that the anterest he WIL pay on the repo Sill be FUR #,620.69 (simple interest). 28 + rortc: Repos Calewations 2 EPO PR 26 MOLLTON GENERAL COLLATERAL WET R DIRTY PATE WP 19,162,000 OH 2 MIMI 461 DAYS) HERO RIE AT 9,25 26 we te cu, Hae Report ‘ption A IR 20,105,524. 02 a Option B: EUR 19,110,138, 89 Option C= BR 105,524.07008 ila! fou selected the CORWET option ~ D: HR 19,267, 524.07 ‘aterest payable is the ixitial consideration 19,162, 9X eyo rate 3.25 pie, X Mo, of days 61 / 360 X 100 ~ 185,524.07 making the 10H 29 : TOPIC: Repos Calculations ‘GUL 190K STREET EHIK LOWDOM MD ASK GILT FEPO PRICES FUR 14 DAY GC MD ME QUOTES YOU 4.00 - 3.675 P.C. YOU ARE LOOKING 10 HEPO OUT 5 Pc. 200K ITH K ROUNDED DIRE PRICE OP GBP 9,565,000.08 IN & CASH DRIVEN TRADE, WAP MITA, CONSIDERATION TS NAULYED AND 9G LITRES? tion A: GBP 10,000,000, 15,342.47 Option B: GBP 10,000,000, 14,675.07 Option C= GBP 9,565,000, 14,695.07 Option D: GBP 9,365,000, 44,216.47 selected tke CORRECT option - C1 GBP 9,569,000, 14,675 information Not 11 deal on the market maker's BID ~ selling and buying the Oilts therefore entering into rep0 at 4.00 pee, The iwitial consideration 3 he dirty price aut the interest payable at maturity 42 14,675.07 (4.00 .c. for 14 dave) lowesrian 30 : rortc: Reyes Catewiations nse Pc. Option a: USD 6,157.64 Us 4,750.40, Option C: USD 8,¢20.59 Option Ds USD 8,630.14 fou selected the COREY aption ~ C: USD #, 620.63 fas Fepner the dealer is charged 1.58 p.c. margin (haircut) on collateral of USD 58, the cash received wil Ma ston. nan et ats = [uso s,261,025.71 meaning that the Laterest Re Will pay on the 5 day Fepo Will be USD $,620.69 (euuple interest) rereFORE AC 008 ila! fhe tem omy price quoted to you by Main Strect hank ia his bid - Offer for the accwrity in a repo transaction, Tf gow are looking for cash you will deal Om the marbet maber'e BID ~ selling and buying the GLItS therefore enteriag iato a Fepo at 4.00 p-c. The ialtial consideration 12 fee dirty price and the interest payable at maturity a2 24,619.67 {2-40 pc. far 24 days) faesti tn: eos caecatione Paeeton ts wo 257.04 ption Bs USD &.730.00 htien sO AGeance) Option bs USD #0630, 48 selected the CORRECT option - €: USD 6,620.69 a vepoer the dealer 48 charged 1.50 p.c. margin (halxcut) on collateral of USD 5 the cash received wilt be 50,000,000 f 4.015 = hsv 49,261,002. 16 meaning that the interest he will pay on the 3 day erpo will be USD 2,620.69 {simple anterest) fou anewered 38 out of the 10 questions requested, vere correct in 75 questions out of the 50 anuwered - a percentage of 16.7%. four Topic score: 2 out af 18 (16.79) Nour Topie tosessuent: Yer qood indeed, well on top of this topic He Repon