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NEW QUESTION: 1
Which one of the following four statements correctly defines an option's delta?
A. Delta measures the impact of volatility on the price of an option.
B. Delta measures the effect of 1 bp in interest rate change on the option price.
C. Delta measures the expected decline in option with time and is usually expressed in years.
D. Delta is the multiplier that best approximates the short-term change in the value of an option.
Answer: D
NEW QUESTION: 2
An internal auditor found that the cost of some material installed on capital projects had been transferred to the inventory account because the capital budget had been exceeded. Which of the following would be an appropriate technique for the auditor to use to determine the extent of the problem?
A. Analyze a sample of capital transactions each quarter to detect instances in which installed material was transferred to inventory.
B. Identify variances between amounts capitalized each month and the capital budget.
C. Review all journal entries that transferred costs from capital to inventory accounts.
D. Compare inventory receipts with debits to the inventory account and investigate discrepancies.
Answer: C
NEW QUESTION: 3
Which VPN connectivity representing both Hub-and-Spokes and Spokes-to-Spokes?
A. IPSec VPN
B. DMVPN
C. VPN Router
D. VPN hub
Answer: B
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