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NEW QUESTION: 1
[According to the PRMIA study guide for Exam 1, Simple Exotics and Convertible Bonds have been excluded from the syllabus. You may choose to ignore this question. It appears here solely because the Handbook continues to have these chapters.] The use of numerical pricing methods over analytical methods for valuing exotic options is resorted to allow for which of the following reasons:
I. Efficient valuation
II. Allowing for stochastic volatility
III. Accommodating discontinuous asset prices
IV. Allowing for complex payoffs
A. I
B. I, II, III and IV
C. II, III and IV
D. I, II and III
Answer: C
Explanation:
Explanation
Analytical methods are more 'efficient' than numerical methods in terms of computing power required, consistency of results and providing clarity on the inputs driving the results. Therefore 'efficient valuation' is not a reason to adopt numerical pricing methods over analytical methods.
It is much easier to incorporate changing stochastic volatility, discontinuous asset prices or other complex payoffs using numerical pricing methods. So these certainly represent good reasons to use numerical pricing methods for valuing exotics.
Therefore Choice 'b' is the correct answer.
NEW QUESTION: 2
You are using the Visual Studio development environment to perform a customization for your client Your project has a set of relevant elements.
You need an object that can be used as the project startup object during project execution.
Which three options are available? Each correct answer presents a complete solution.
A. Extended Data Type (EDT)
B. Menu Items
C. Forms
D. Classes
E. Tables
Answer: A,C,D
NEW QUESTION: 3
A technician installed a new fiber optic cable to connect two sites. Although there is a link light on the port at each site the customer reports traffic is dropping intermittently. Which of the following should the technician do NEXT to troubleshoot the issue?
A. Check the interfaces for CRC errors.
B. Check that the pinout is correct.
C. Check for a TX/RX reverse on the connector.
D. Check for a VLAN mismatch.
Answer: A
NEW QUESTION: 4
What are three possible policy results in a default (advanced) policy configuration? (Choose three.)
A. Drop
B. Bridge
C. Undefined
D. False
E. True
Answer: C,D,E
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