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NEW QUESTION: 1
Which of the following statements are true:
I. For a delta neutral portfolio, gamma and theta carry opposite signs
II. The sum of the absolute value of gamma for a call and a put for the same option is 1 III. A large positive gamma is desirable in a delta neutral portfolio IV. A trader needs at least two separate tradeable options to simultaneously make a portfolio both gamma and vega neutral
A. I and II
B. III and IV
C. I, III and IV
D. II and IV
Answer: C
Explanation:
Explanation
Statement I is true. Consider the Black Scholes PDE 202.23.e1
and substitute delta = 0 (as this is a delta neutral portfolio), and we get the result 202.23.e.
Since r is generally small, and and S are positive, theta will be negative when gamma is positive and vice versa.
Statement II is incorrect. The gamma of a call and a put are equal and do not add to 1. The relationship described applies to delta, and not gamma.
Statement III is correct because positive gamma means that the portfolio gains both from an increase and a decrease in the value of the underlying, given delta neutrality. (Generally, a positive gamma is a good thing, but like everything else, it does not come free. A trader can choose to keep their portfolio gamma positive, but in doing so he or she would be giving up premiums from options they would have sold to neutralize the gamma.) Statement IV is correct because the only way to hedge gamma and vega is through other options positions as only options have gamma and vega. If only one tradeable option is available, it would be possible to hedge either the gamma or the vega, but not both, as achieving neutrality in one will upset the neutrality of the other.
The only way to simultaneously hedge the two would be to use two different options on the underlying, and determine the number of options to be traded (using a system of simultaneous equations).

NEW QUESTION: 2
The Oracle Grid Infrastructure administrator runs ocrconfig -backupioc <new_location> after completing the installation of the Grid Infrastructure. What are the two reasons for doing this
A. If for any reason CRS must be stopped on all nodes for a time spanning a scheduled backup, then on restart, the backup timer will be reset. This could result in longer time duration between automatic backups than the standard four-hour interval.
B. The master node may change if the node running the master CRS daemon shuts down causing another node to become the master. Because the default location is a nonshared storage, and only the master node performs backups, the backups could be spread around on many nodes making management or recovery more difficult.
C. The cluster node currently acting as the master node for CRS is the only node that backs up the OCR to the default location, and by changing the location, all cluster nodes will then take backups.
D. This is done to move the backup location into an ASM Cluster File System directory so that the backups benefit from ASM striping and mirroring.
Answer: A,B
Explanation:
Changing the Automatic OCR Backup Location
The automatic backup location should be changed to a location shared by all nodes.
# ocrconfig -backuploc <path to shared CFS or NFS>
The backup location will be used for both automatic and manual backups.
It is recommended that these files be included in routine scheduled backups to an offline location.
If CRS has been stopped on all nodes, the schedule of backups is suspended.
On restart, a backup is not immediately taken and the backup timer is reset.
D60488GC11 Oracle 11g: RAC and Grid Infrastructure Administration Accelerated 3 - 12

NEW QUESTION: 3
Which statement is correct about multiple independent classes in Report Optimizer?
A. They are defined at the report run time.
B. They can be included in one report by adding a second query to the report.
C. They can be included in one report, but must be joined within a single query.
D. They cannot be included in one report.
Answer: B

NEW QUESTION: 4
What is the most efficient Linux command for determining whether there is a running process named runme?
A. ps -ef > runme
B. netstat -a < runme
C. ps -ef | grep runme
D. netstat -a | grep runme
E. ps -ef < runme
F. netstat -a > runme
Answer: C