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NEW QUESTION: 1
Which of the following statements are true:
I. Caps allow the buyer of the cap protection against rise in interest expense II. Floors offer investors protection from downward movement in interest rates III. Collars can be used as hedges IV. Both caps and collars can be used to hedge against widening credit spreads
A. II and III
B. I, II and III
C. I, II, III and IV
D. I and II
Answer: B
Explanation:
Explanation
Interest rate caps are effectively call options on an underlying interest rate that protect the buyer of the cap against a rise in interest rates over the agreed exercise rate. As with options, the premium on the cap depends upon the volatility of the underlying rates as one of its variables. A floor is the exact opposite of a cap, ie it is effectively a put option on an underlying interest rate that protects the buyer of the floor against a fall in interest rates below the agreed exercise rate. Therefore statements I and II are correct.
A cap protects a borrower against a rise in interest rates beyond a point, and a floor protects a lender against a fall in interest rates below a point.
A collar is a combination of a long cap and a short floor, the idea being that the premium due on the cap is offset partly by the premium earned on the short floor position. Therefore a collar is less expensive than a cap or a floor.
Caps, floors and collars provide a hedge against interest rate risks. Therefore statement III is correct too.
However. they do not always provide protection against spreads changing, as the rate other than the one referenced by the cap or the floor may change causing the spread to change. Therefore statement IV is incorrect.
NEW QUESTION: 2
A. Option E
B. Option C
C. Option A
D. Option D
E. Option B
Answer: A,B,C
Explanation:
A: An Automation Account is a container for your Azure Automation resources: it provides a way to separate your environments or further organize your workflows. To create An Automation Account
1.Log in to the Azure Management Portal.
2.In the Management Portal, click Create an Automation Account.
3.On the Add a New Automation Account page, enter a name and pick a region for the account.
Reference: Get started with Azure Automation
http://azure.microsoft.com/en-gb/documentation/articles/automation-create-runbook-fromsamples/
C:
*Asset credentials are either a username and password combination that can be used with Windows PowerShell commands or a certificate that is uploaded to Azure Automation.
*The Assets page in Automation displays the various resources (also called "settings") that are globally available to be used in or associated with a runbook, plus commands to import an integration module, add a new asset, or delete an asset. Assets include variables, schedules, credentials, and connections.
Reference: Getting Started with Azure Automation: Automation Assets
http://azure.microsoft.com/blog/2014/07/29/getting-started-with-azure-automationautomation-assets-2/
E:
Reference: Managing SSH enabled Linux hosts using Service Management Automation
http://blogs.technet.com/b/orchestrator/archive/2014/05/01/managing-ssh-enabled-linuxhosts-using-service-management-automation.aspx
NEW QUESTION: 3
When configuring Cisco Unified Mobility, which parameter defines the access control for a call that reaches out to a remote destination?
A. Calling Search Space under Phone Configuration
B. User Local under Remote Destination Profile Information
C. Rerouting Calling Search Space under Remote Destination information
D. Calling Party Transformation Calling Search Space under Remote Destination Profile Information
E. Rerouting Calling Search Space under Remote Destination Profile Information
Answer: E
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