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NEW QUESTION: 1
An information security policy must be:
A. All the above
B. Distributed and communicated
C. Written in simple language
D. Enforceable and Regularly updated
Answer: A

NEW QUESTION: 2
Refer to the exhibit.

The two routers have had their startup configurations cleared and have been restarted. At a minimum, what must the administrator do to enable CDP to exchange information between R1 and R2?
A. Configure the router with the cdp enable command.
B. Configure IP addressing and no shutdown commands on either of the R1 or R2 fa0/1 interfaces.
C. Configure IP addressing and no shutdown commands on both the R1 and R2 fa0/1 interfaces.
D. Enter no shutdown commands on the R1 and R2 fa0/1 interfaces.
Answer: D
Explanation:
Explanation
If the no shut down commands are not entered, then CDP can exchange information between the two routers.
By default, all Cisco device interfaces and ports are shut down and need to be manually enabled.

NEW QUESTION: 3
The rate of dividend on a stock goes up. What is the effect on the price of a put option on this stock?
A. It does not affect the value of the put
B. It may affect the put value either way depending upon the risk-free rate
C. It increases the value of the put
D. It decreases the value of the put
Answer: C
Explanation:
Explanation
Everything else remaining the same, an increase in the rate of dividends causes the value of call options to fall and the value of put options to rise. Therefore, Choice 'b' is the correct answer. (In the exam, the question could address either a call or a put option, so be aware of the answer in either case).
To understand this, consider how dividends are accounted for when valuing an option using the Black Scholes model. Future dividends are discounted to the present using the risk free rate and this discounted value is reduced from the spot price used in the BSM valuation. Effectively, this reduces the spot price used in the BSM formula. When the spot price reduces, and the exercise price remains the same, then the value of the call option goes down. In the same way, when spot price is reduced by the present value of dividends (and the exercise price stays the same), obviously the put option becomes more valuable. Therefore an increase in the rate of dividends increases the value of the put option.
There is another intuitive way to think about this: A call option is like a long position in the stock, but the holder of the call option is not entitled to receive dividends (unlike the holder of the stock). Since the holder of the call option has to forego the dividends, he is willing to pay less for the option; or in other words, the value of the call reduces.
In the same way, a put option is like having a short position in the stock. The holder of the short position has to borrow the stock in order to get into the short position in the first place. When dividends are paid, the holder of the short stock position has to make good any dividends that might be paid to the lender of the stock. The holder of a put option does not have to make any such payments. Therefore the put option is more valuable, and the existence of dividends (or an increase in dividends) increases the value of the put option.
(Try this out using the Black Scholes Excel model given under the tutorials by varying the spot price.)

NEW QUESTION: 4
Refer to the exhibit. What is the default behavior expected upon running the ip dhcp snooping vlan 10 command?

A. All of the ports that are not placed in VLAN 10 are untrusted.
B. All of the switch ports in VLAN 10 are trusted.
C. The user can obtain an IP address via DHCP.
D. All of the switch ports in VLAN 10 are untrusted.
Answer: B