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NEW QUESTION: 1
Which of the following is needed to securely distribute symmetric cryptographic keys?
A. Officially approved and compliant key management technology and processes
B. Hardware tokens that protect the user's private key.
C. Officially approved Public-Key Infrastructure (PKI) Class 3 or Class 4 certificates
D. An organizationally approved communication protection policy and key management plan
Answer: D
NEW QUESTION: 2
Barton Wilson, a junior analyst, is a new hire at a money center bank. He has been assigned to help Juanita Chevas, CFA, in the currency trading department. Together, Wilson and Chevas are working on the development of new trading software designed to detect profitable opportunities in the foreign exchange market. Obviously, they are interested in risk-free arbitrage opportunities. However, they have also been instructed to investigate the possibility of longer-term currency exposures that are not necessarily risk-free. To test the logic of their new software, Wilson gathers the following market data:
* Spot JPY/USD exchange rate = 120.
* Spot EUR/USD exchange rate = 0.7224.
* U.S. risk-free interest rate = 7%.
* Eurozone risk-free rate = 9.08%.
* Japanese risk-free rate = 3.88%.
* Yield curves in all three currencies are flat.
In addition to in-house currency transactions, the new software program is also intended to provide insight into currency exposure and hedging needs for the bank's major customers. These customers typically include large multinational firms. Essentially, the bank wants to provide consulting services to its clients concerning which currency exposures offer the greatest possibility of appreciation. In this process, the bank will rely on deviations from international parity conditions as an indicator of long-term currency movements.
Wilson obtains the following data from the econometrics department:
* JPY/USD spot rate one year ago =116.
* EUR/USD spot rate one year ago = 0.7200.
* Anticipated and historical U.S. annual inflation = 3%.
* Anticipated and historical Japanese annual inflation = 0%.
* Anticipated and historical Eurozone annual inflation = 5%.
One of the bank's major customers has significant portions of its business in Japan, and the Eurozone and has long exposure to both currencies. The customer has traditionally hedged all currency risk. However, the customer's new risk manager has decided to leave some currency exposure unhedged in an attempt to profit from long-term currency exposure.
Wilson wants to approximate the forward discount/premium for the JPY against the USD 12 months from now. According to the approximate version of interest rate parity, the JPY would most likely trade at a:
A. 3.12% forward premium against the USD.
B. 3.12% forward discount against the USD.
C. 1.7% forward discount against the USD.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The forward premium/discount is approximated by the interest rate differential: r.pY - rus. The Interest rate differential is -3.12% (= 3.88% - 7%). Is this a discount or a premium? Since Japanese interest rates are lower than U.S. interest rates, interest rate parity (IRP) tells us that the forward price of the JPY must be greater than the USD. Hence, it takes more USD to buy JPY forward, so the JPY should be trading at a premium to the USD. (Study Session 4, LOS 18.g,h,i)
NEW QUESTION: 3
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during the holiday season. The data scientists are collecting terabytes of data that rapidly grows every
hour during their 30-day campaign. They are using Google Cloud Dataflow to preprocess the data and
collect the feature (signals) data that is needed for the machine learning model in Google Cloud Bigtable.
The team is observing suboptimal performance with reads and writes of their initial load of 10 TB of data.
They want to improve this performance while minimizing cost. What should they do?
A. Redefine the schema by evenly distributing reads and writes across the row space of the table.
B. The performance issue should be resolved over time as the site of the BigDate cluster is increased.
C. Redesign the schema to use a single row key to identify values that need to be updated frequently in
the cluster.
D. Redesign the schema to use row keys based on numeric IDs that increase sequentially per user
viewing the offers.
Answer: A
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