Which is NOT part of the guidance on Professional Conduct in the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct)?

• A.Know and abide by applicable rules and regulations
• B.Provide advice that is clear and accurate
• C.Clearly inform all affected parties of any apparent or actual conflicts of interest
• D.Report to the Regulator any departures from generally accepted methodology or practices

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Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust

• A.hid profits
• B.did not honour its contractual obligations to pay
• C.was involved in accounting fraud
• D.sold them derivative products without properly advising them of the relevant risks

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The hedging strategy employed by MG Refining & Marketing has been called:

• A.A differential hedge
• B.A stacked hedge
• C.Nothing because MG Refining & Marketing did not hedge its position
• D.Dynamic hedging

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In the case of National Australia Bank, which of the following was present?

• A.Both A and B
• B.The Board received risk management information that was incorrect, incomplete or insufficiently detailed
• C.Neither A nor B
• D.A window of time between close of day for reporting purposes and back office checking that allowed traders to hide losses using fictitious trades

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The condition where futures prices of an underlying asset are lower than cash (spot) prices is known as:

• A.Reverse backwardation
• B.Backwardation
• C.Conchacha
• D.Contango

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