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NEW QUESTION: 1
CORRECT TEXT
With SELinux, what is the command that is used for changing the context of a file? (Specify the command only, with no path information or arguments)
Answer:
Explanation:
chcon chsid setfattr
NEW QUESTION: 2
Which three statements are true when the listener handles connection requests to an
Oracle 12c database instance with multithreaded architecture enabled In UNIX?
A. Each Oracle process runs an SCMN thread.
B. The local listener may spawn a now process and have that new process create a thread
C. Thread creation must be routed through a dispatcher process
D. The local listener may pass the request to an existing process which in turn will create a thread.
E. Each multithreaded Oracle process has an SCMN thread.
Answer: C,D,E
NEW QUESTION: 3
The Project Manager is creating an estimate for a housing development. This is something for which he is quite experienced. The client needs the estimate in four hours. Which of the following types of estimates make the most sense to use?
A. Parametric
B. Bottom-up
C. Analogous
D. Gut feel
Answer: C
NEW QUESTION: 4
Which of the following statements are true:
I. Rebalancing frequency is a consideration for a risk manager when assessing the adequacy of delta hedging procedures on an options portfolio II. Stock options granted to employees that are exercisable 5 years in the future will lead to a decline in the share price 5 years hence only if the options are exercised.
III. In a delta neutral portfolio, theta is often used as a proxy for gamma by traders.
IV. Vega is highest when the option price is close to the strike price
A. II
B. I, II, III and IV
C. III and IV
D. I, III and IV
Answer: D
Explanation:
Explanation
Delta hedges need to be rebalanced periodically because with changes in prices, delta changes, and the amount of hedge required changes as well, requiring a readjustment. The more frequent the rebalancing, the better the performance of the hedge. However, the greater the rebalancing frequency, the greater are the number of trades required, increasing the costs from trading. The trader has to balance transaction costs against the adverse effects from poorer hedge performance. Therefore rebalancing frequency is a consideration for a trader and statement I is true.
Statement II is not true. When options are granted, their future impact on the price gets priced in into the current price, and no change occurs when these are actually exercised.
Statement III is true. Consider the Black Scholes PDE
202.23.e1
and substitute delta = 0 (as this is a delta neutral portfolio), and we get the result 202.23.e. Since r is generally small, a large negative theta means a large positive gamma and vice-versa. Therefore theta can be used as a proxy for gamma and this statement is correct.
Statement IV is correct. Vega is highest closest to the strike price - look at the graph for vega to see how vega behaves with changes to spot. (Do it yourself or there is a graph in the tutorial too.)
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