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NEW QUESTION: 1
Which of the following are valid approaches to calculating potential future exposure (PFE) for counterparty risk:
I. Add a percentage of the notional to the mark-to-market value
II. Monte Carlo simulation
III. Maximum Likelihood Estimation
IV. Parametric Estimation
A. All of the able
B. I, III and IV
C. III and IV
D. I and II
Answer: D
Explanation:
Explanation
When a derivative position is entered into, its mark-to-market value is generally close to zero (though the notional may be high). With the passage of time, the derivative's value fluctuates in an unpredictable way, creating a counterparty exposure that may be difficult to estimate and risk manage. Counterparty risk in such cases is estimated based on Potential Future Exposure, which may be calculated using either:
a) Take the mark-to-market at present, and add a certain percentage of the notional, or b) Perform a Monte Carlo simulation, capturing the stochastic nature of the PFE.
Therefore I and II are valid choices. MLE and parametric estimation are not methods for calculating PFE.
NEW QUESTION: 2
HOTSPOT
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You need to publish Microsoft Exchange ActiveSync services by using the Publish New Application Wizard. The ActiveSync services must use preauthentication.
How should you configure Server1? To answer, select the appropriate options in the answer area.
Hot Area:
Answer:
Explanation:
NEW QUESTION: 3
What is the role of neighbor solicitation (NS) messages in the autoconfiguration of an IPv6 address?
A. An IPv6 node sends an NS message for its tentative address to determine whether another node is using it.
B. An IPv6 node sends an NS message for the global prefix to prompt other IPv6 nodes to advertise the addresses that they are using on that prefix.
C. An IPv6 node sends an NS message to prompt an IPv6 router on the link to advertise the global prefixes associated with the link immediately.
D. An IPv6 node sends an NS message to inform a node undergoing autoconfiguration that it is already using a particular address.
Answer: A
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