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NEW QUESTION: 1
Which of the following are true:
I. Delta hedges need to be rebalanced frequently as deltas fluctuate with fluctuating prices.
II. Portfolio managers are right to focus on primary risks over secondary risks.
III. Increasing the hedge rebalance frequency reduces residual risks but increases transaction costs.
IV. Vega risk can be hedged using options.
A. II, III and IV
B. I and II
C. I, II and III
D. I, II, III and IV
Answer: D
Explanation:
Explanation
Delta is non-linear with respect to prices for a number of securities such as bonds, options and other derivatives. It changes with changes in prices, and any hedge initially undertaken becomes quickly mismatched. Therefore delta hedges need to be managed quite actively and kept up-to-date. Therefore I is true.Primary risks comprise most of the risk in a position, and therefore portfolio managers are right to focus on them over secondary risks. Therefore II is true.The greater the hedge rebalance frequency, the lower is the hedge mismatch at any point in time, and therefore residual risks would be lower. However, rebalancing hedges requires rebalance trades to be done, and these involve transaction costs. Generally, a reasonable balance needs to be struck between the frequency of rebalances (a lower frequency increases residual risk, but this residual risk is not directionally biased) and the costs of rebalancing. III is correct.Vega risk is the risk arising due to changes in prices due to changes in volatility. Options carry vega risk. Therefore any hedges against vega risks can only be obtained using other options positions. (Vega risk may also be hedged using other volatility based products, eg an OTC volatility swap, or a VIX futures type product.)

NEW QUESTION: 2
Refer to the exhibit.

A user is going through a series of dialing steps on a SIP Type B IP phone to call a SCCP IP phone. Both phones are registered to the same Cisco Unified Communications Manager cluster. Assume that the calling SIP phone is associated with a SIP dial rule with a pattern value of "2001".
Which statement about how digits are forwarded to the Cisco Unified Communications Manager for further call processing is true?
A. As soon as the Dial soft key is selected, the SIP IP phone forwards the first digit in a SIP INVITE and the subsequent digits in SIP INFORMATION messages.
B. The SIP IP phone waits for the inter-digit timer expiry and then sends each digit to the Cisco Unified Communications Manager as a separate KPML event in a SIP NOTIFY message.
C. As soon as the user selects the Dial soft key, the SIP IP phone forwards all digits to the Cisco Unified Communications Manager in a SIP INVITE message.
D. As each digit is pressed on the SIP IP phone, it is sent to the Cisco Unified Communications Manager in a SIP NOTIFY message as a KPML event.
E. The SIP IP phone waits for the inter-digit timer expiry, and then sends all digits to the Cisco Unified Communications Manager in a SIP INVITE message.
Answer: C

NEW QUESTION: 3
A customer with critical up-time requirements is comparing POWER9 processor-based servers.
Which RAS feature is found only on the Power System E980?
A. Chipkill memory
B. Split backplane
C. Hot swap fans
D. Redundant Service Processors
Answer: D