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NEW QUESTION: 1
The principle underlying the contingent claims approach to measuring credit risk equates the cost of eliminating credit risk for a firm to be equal to:
A. the probability of the firm's assets falling below the critical value for default
B. the value of a put on the firm's assets with a strike equal to the value of the debt
C. the cost of a call on the firm's assets with a strike equal to the value of the debt
D. the market valuation of the firm's equity less the value of its liabilities
Answer: B
Explanation:
Explanation
Under the contingent claims approach, a firm will default on its debt when the value of its assets fall to less than the face value of the debt. Debt holders can protect themselves against such an event by buying a put on the assets of the firm, where the strike price is equal to the value of the debt. In other words, Risky Debt + Put on the firm's assets = Risk free debt. This is because if the value of the assets is greater than the value of the debt, they will be paid in full. If the value of the assets is lower than the value of the debt, they will exercise the put and be paid in full.
Therefore the value of the put on the firm's assets with a strike equal to the value of the debt represents the cost of eliminating credit risk. Choice 'b' is the correct answer.
Note that it is improbable that a put on the firm's assets is available in real life to debt holders. However, the same effect can be synthetically achieved by using the shares of the firm as a proxy for its assets, and shorting an appropriate number of shares. Such a synthetic put will require frequent readjustments.

NEW QUESTION: 2
Which of the following addresses a portion of the primary memory by specifying the actual address of the memory location?
A. Indirect addressing
B. direct addressing
C. indexed addressing
D. implied addressing
Answer: B
Explanation:
+------+-----+--------------------------------------+
| load | reg | address |
+------+-----+--------------------------------------+
(Effective address = address as given in instruction)
This requires space in an instruction for quite a large address. It is often available on CISC
machines which have variable-length instructions, such as x86.
Some RISC machines have a special Load Upper Literal instruction which places a 16-bit constant
in the top half of a register. An OR literal instruction can be used to insert a 16-bit constant in the
lower half of that register, so that a full 32-bit address can then be used via the register-indirect
addressing mode, which itself is provided as "base-plus-offset" with an offset of 0.
http://en.wikipedia.org/wiki/Addressing_mode (Very good coverage of the subject)
also see:
Source: KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten
Domains of Computer Security, page 186.
also see:
http://www.comsci.us/ic/notes/am.html

NEW QUESTION: 3
Azure Service BusとQueue1という名前のキューがあります。 Queue1は、次の展示に示すように構成されています。

ドロップダウンメニューを使用して、図に示されている情報に基づいて各ステートメントを完成させる回答の選択肢を選択します。
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Answer:
Explanation:

Explanation