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NEW QUESTION: 1
A stock that pays no dividends is trading at $100 spot or $104 as a three month forward. The interest rate you can borrow at is 6% per annum. US treasury yields are 4% per annum. What should you do to profit in the situation?
A. It is not possible to profit from the situation
B. Buy the stock and sell the forward
C. Buy the forward and also buy the stock
D. Sell the stock and buy the forward
Answer: B
Explanation:
Explanation
Since the stock is selling for $100 spot, its 3 month forward price for you would be $100*(1 + 6%*3/12) =
$101.50. Since the forward is priced at $104, it is 'rich' compared to the spot and should be sold. A profitable trade would be to buy the spot and sell the forward.
Imagine you borrow $100 and buy the stock, and simultaneously sell the forward. At the end of 3 months, you will receive $104 in return from the forward, and be obliged to return the initial $100 borrowed together with interest of $1.50 for the three months. You would make a riskless profit of $2.50 per share in three months.
Thus Choice 'c' is the correct answer.
Note that the treasury yield is irrelevant, what matters is the rate at which you can finance the trade which is
6% per annum.

NEW QUESTION: 2
The support of which image resource is new to IBM Domino Designer 9.0 Social Edition?
A. Bitmap
B. PNG
C. GIF
D. JPEG
Answer: B

NEW QUESTION: 3
Scenario
A site application is complete and is about to go before the planning commission. As a member of the planning staff, you believe there is the appearance of a conflict of interest for a planning commissioner who owns property near the proposed site and stands to benefit from the increase in property value that the new development is projected to generate. What might you do?
Answer:
Explanation:
See the solution below
Explanation
First, consider what should already have happened before the application was about to go before the planning commission. Clearly, you should know about any laws in your state or jurisdiction that apply to such a situation and should follow the law. The potential conflict should have been identified well before this. After noticing the conflict, based on office protocol, it must be decided who will approach (or confront) the commissioner about the conflict of interest. If your boss is unwilling to explain the conflict of interest, you must decide how you will handle this. You might ask the APA Ethics Officer for informal advice on what you should do (Procedure 2).
Whoever brings the conflict to the attention of the commissioner should recommend that the commissioner recuse himself or herself from the planning commission meeting. Suppose the potential conflict only became apparent at the time of the meeting. At that point in time, you should explain the problem to the planning director. Then, the planning director and the commissioner might consult privately and decide what to do; if the law is clear, obviously the decision must be to follow the law. If the decision is made that the commissioner should recuse himself or herself from the decision-making process, then the commissioner should leave the room. Recusing oneself means more than just sitting there quietly. In addition, the commissioner must not engage in future discussions with the board or planning staff about the application (Ethical Principle 2).
Suppose the law on what constitutes a conflict of interests is not clear or does not exist and suppose that the commissioner says that this is silly and that there is no conflict of interest. Then you might go to the jurisdictional attorney for guidance. If the commissioner continues to participate in the process, you should clearly state the conflict in your report (Rule of Conduct 19).

NEW QUESTION: 4
Which of the following would MOST likely require a cold migration?
A. Moving VMs between hosts with different RAM configurations
B. Moving VMs between hosts with different CPU architectures
C. Moving VMs between hosts in different network segments
D. Moving VMs between hosts on different continents
Answer: B