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NEW QUESTION: 1
Net funding requirements in liquidity management are determined by means of:
A. adding up expected vault cash outflows, ATMs and other cash points operated by the institution across all branches
B. subtracting short-term liabilities from short-term assets
C. the net cash flow from investment activities in the IFRS consolidated Statement of Cash Flows for prior periods
D. establishing a forward cash flow plan that takes account of all contractual and behavioral cash flows related to assets and liabilities
Answer: D
NEW QUESTION: 2
[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: 3
An administrator is tasked with performing a vMotion migration of a virtual machine.
The virtual machine is configured as follows:
* vSphere Flash Read Cache (vFRC) enabled
* Is part of a Distributed Resource Cluster (DRS) Cluster
Which two statements are true? (Choose two.)
A. Each ESXi host in the cluster supports one virtual flash resource.
B. DRS treats powered-on virtual machines with Flash Read Cache as having a preferred affinity to their current host and moves them only for mandatory reasons.
C. DRS treats powered-on virtual machines with Flash Read Cache as having a required affinity to their current host and does not move them.
D. Each ESXi host in the cluster supports multiple virtual flash resources.
Answer: A,B
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