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NEW QUESTION: 1
A currency with a lower interest rate will trade:
A. at a forward premium
B. cannot be determined solely on the basis of interest rates
C. at a forward discount
D. at the same prices for forwards as for the spots
Answer: A
Explanation:
Explanation
Given covered interest parity, the currency with a lower interest rate will trade at a forward premium. Choice
'b' is the correct answer.
For an intuitive reasoning, consider a currency forward contract that matures in 3 months. The seller has agreed to sell, say JPY 1,000,000 in exchange for USD 10,000 in the future. In order to cover himself, he borrows the USD right now and converts it to JPY at spot which he puts in a JPY deposit. Assuming JPY interest rates are less than USD interest rates, he pays more on his USD borrowing than he receives on his JPY deposit. Therefore he has to price the forward contract at a premium to spot to cover the interest rate differential.
NEW QUESTION: 2
Refer to the graphic.
A static route to the 10.5.6.0/24 network is to be configured on the HFD router. Which commands will accomplish this? (Choose two.)
A. HFD(config)# ip route 10.5.6.0 0.0.0.255 fa0/0
B. HFD(config)# ip route 10.5.6.0 255.255.255.0 10.5.4.6
C. HFD(config)# ip route 10.5.4.6 0.0.0.255 10.5.6.0
D. HFD(config)# ip route 10.5.4.6 255.255.255.0 10.5.6.0
E. HFD(config)# ip route 10.5.6.0 255.255.255.0 fa0/0
F. HFD(config)# ip route 10.5.6.0 0.0.0.255 10.5.4.6
Answer: B,E
Explanation:
The simple syntax of static route:
ip route destination-network-address subnet-mask {next-hop-IP-address | exit-interface}
+
destination-network-address: destination network address of the remote network
+
subnet mask: subnet mask of the destination network
+
next-hop-IP-address: the IP address of the receiving interface on the next-hop router
+
exit-interface: the local interface of this router where the packets will go out In the statement "ip route 10.5.6.0 255.255.255.0 fa0/0:
+
10.5.6.0 255.255.255.0: the destination network
+fa0/0: the exit-interface
NEW QUESTION: 3
In a VMAX discovery, what metric is available through the SMI-S Provider?
A. LUN write request
B. Disk I/O Rate
C. Array FE Directors - %busy
D. RDF Director Write Throughput
Answer: A
NEW QUESTION: 4
When upgrading a Cisco ASR 1001 Router, when is the request platform software package expand file bootflash:image-name command required?
A. to run the router using individual subpackages
B. to copy the consolidated Cisco IOS XE image to the bootflash:
C. to run the router using a consolidated package
D. to perform Cisco IOS ISSU on the standby route processor
Answer: A
Explanation:
Explanation
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