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NEW QUESTION: 1
Which of the following is the BEST approach for encouraging business units to assume their roles and responsibilities in an information security program'
A. Perform a risk assessment
B. Conduct a security audit.
C. Conduct an awareness program
D. Develop controls and countermeasures
Answer: B

NEW QUESTION: 2

A. Option D
B. Option B
C. Option C
D. Option A
Answer: D

NEW QUESTION: 3
Donaghy Management Company (DMC) manages several funds only available to high net worth individuals. In preparation for an upcoming meeting, the firm has circulated among its managers the information in Figure 1 on objectives and market expectations relevant to each of three funds.
Figure 1: Fund Strategies and Market Expectations

The manager of Fund A has collected data on put and call options on the broad market index underlying his strategy. The option data are presented in Figure 2. All options presented have the same expiration date.
Figure 2: Option Data for the Broad Market Index

During the meeting, the manager of Fund B states that in order to enhance returns for the fund, he intends to implement a box-spread strategy. The manager explains the strategy by stating, "The ending price of the asset underlying the box-spread strategy has no impact on the payoff of the strategy.
Thus, if the market price of the strategy implies a rate of return greater than the risk-free rate, an arbitrage opportunity exists." Also during the meeting, DMC's president questioned the manager of Fund C about the mechanics of his hedging strategy. The manager explained the strategy with the following comments:
Comment 1: "The hedge position is established to reduce the exposure to certain equity positions by writing call options on those equity positions. The necessary number of short option positions per share of stock held is calculated as the inverse of the option delta." Comment 2: "The hedge position only requires adjusting in the event of a price or volatility change in the underlying and is effective for small changes in the price of the underlying security." In 110 days, the manager of Fund B expects to borrow $50,000,000 for 180 days at a rate of 180-day LIBOR plus 150 bp to pursue a leveraged strategy. LIBOR is currently 6.5%. The manager purchases an interest rate call on 180-day LIBOR that expires in 110 days with a premium of $120,000 and exercise rate of 6%. If LIBOR at the option expiration is 7.3%, calculate the effective annual rate on the loan.
A. 8.80%.
B. 7.30%.
C. 8.29%.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
First, calculate the payoff of the option at expiration:
notional principal x max(0, underlying race at expiration - exercise rate)(days in underlying rate / 360)
50,000,000 x max(0, 0.073 - 0.06)(180/360) = 325,000
Next, calculate the compounded value of the option premium:
option premium[l + (current LIBOR + spread)(days until option expiration / 360)]
120,000[1 + (0.065 * 0.015X110/360)] = 122,933
Next, calculate the effective loan proceeds:
loan proceeds - compounded value of option premium
50,000,000 - 122,933 = 49,877,067
Next, calculate the interest on the loan taken in 110 days:
loan proceeds (underlying rate at option expiration + spread) (days in underlying rate / 360)
50,000,000(0.073 + 0.015X180/360) = 2,200,000
Finally, calculate the effective annual interest rate on the loan:

If the manager had not utilized the interest rate option, the rate on the loan would have been 8.8% = 7.3%
+ 1.5%. (Study Session 15, LOS 43.b)

NEW QUESTION: 4
You have an Exchange Server 2003 organization. All servers have 32-bit hardware. You plan to transition to Exchange Server 2010 and deploy new Mailbox servers.
You need to evaluate the current servers to provide recommendations for the deployment of the new Mailbox servers.
What should you include in the evaluation?
A. Number of mailboxes Disk I/O latency RPC latency
B. Number of concurrent connections to Outlook Web App Number of mailbox databases Memory utilization
C. Number of concurrent MAPI connections Size of mailbox databases Number of mailboxes
D. Number of concurrent connections to Outlook Web App RPC latency Disk I/O latency
Answer: C

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