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Pass (-rt) Ie -5 = -6 + 1 Now -5 is the larger number than -6. In other words, theta of put exceeds that of the call in a pure mathematical sense, which is what I mean when I say "theta of put can only exceed the theta of call". But if you ignore the sign, then theta of call is larger at 6 when compared to 5. Therefore the theta of the put is greater than the theta of the call - which is what the answer says.

NEW QUESTION: 3
Barak is a Security Administrator for an organization that has two sites using pershared secrets in its VPN.
The two sites are Oslo and London. Barak has just been informed that a new office is opening in Madrid, and he must enable all three sites to connect via the VPN to each other. Three Security Gateways are managed by the same SmartCenter Server, behind the Oslo Security Gateway. Barak decides to switch from pershared secrets to Certificates issued by the Internal Certificate Authority (ICA).
After creating the Madrid gateway object with the proper VPN Domain, what are Barak's remaining steps?
1. Disable "PreShared Secret" on the London and Oslo gateway objects
2. Add the Madrid gateway object into the Oslo and London's mesh VPN Community
3. Manually generate ICA Certificates for all three Security Gateways.
4. Configure "Traditional mode VPN configuration" in the Madrid gateway object's VPN screen
5. Reinstall the Security Policy on all three Security Gateways.
A. 1, 2, 4, 5
B. 1, 2, 3, 4
C. 1, 2, 3, 5
D. 1, 3, 4, 5
E. 1, 2, 5
Answer: E

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As promised to our users we are making more content available. Take some time and see where you stand with our Free (-rt) can only be a positive number, theta of put can only exceed the theta of a call. However, since theta is generally negative, it often implies that the theta of a call is the larger absolute number.
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Free (-rt) Ie -5 = -6 + 1 Now -5 is the larger number than -6. In other words, theta of put exceeds that of the call in a pure mathematical sense, which is what I mean when I say "theta of put can only exceed the theta of call". But if you ignore the sign, then theta of call is larger at 6 when compared to 5. Therefore the theta of the put is greater than the theta of the call - which is what the answer says.

NEW QUESTION: 3
Barak is a Security Administrator for an organization that has two sites using pershared secrets in its VPN.
The two sites are Oslo and London. Barak has just been informed that a new office is opening in Madrid, and he must enable all three sites to connect via the VPN to each other. Three Security Gateways are managed by the same SmartCenter Server, behind the Oslo Security Gateway. Barak decides to switch from pershared secrets to Certificates issued by the Internal Certificate Authority (ICA).
After creating the Madrid gateway object with the proper VPN Domain, what are Barak's remaining steps?
1. Disable "PreShared Secret" on the London and Oslo gateway objects
2. Add the Madrid gateway object into the Oslo and London's mesh VPN Community
3. Manually generate ICA Certificates for all three Security Gateways.
4. Configure "Traditional mode VPN configuration" in the Madrid gateway object's VPN screen
5. Reinstall the Security Policy on all three Security Gateways.
A. 1, 2, 4, 5
B. 1, 2, 3, 4
C. 1, 2, 3, 5
D. 1, 3, 4, 5
E. 1, 2, 5
Answer: E

(-rt) =+1 and theta of a put is -5 (completely hypothetical) Now Theta of Put = Theta of Call + rKe (-rt) can only be a positive number, theta of put can only exceed the theta of a call. However, since theta is generally negative, it often implies that the theta of a call is the larger absolute number.
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Answer: B

NEW QUESTION: 2
Which of the following relationships are true:
I. Delta of Put = Delta of Call - 1
II. Vega of Call = Vega of Put
III. Gamma of Call = Gamma of Put
IV. Theta of Put > Theta of Call
Assume dividends are zero.
A. I and III
B. I, II, III and IV
C. I, II and III
D. II and IV
Answer: B
Explanation:
Explanation
All the statements are correct, and represent the relationships between the values of the Greek variables for calls and puts for the same option. It is important to know why as the PRM exam often asks tough questions about the Greeks.
Statement I is correct because of the put-call parity. According to the put-call parity, Value of call - Value of put = Spot price - Exercise price discounted to the present Now the delta of the spot is 1, and that of the discounted price is zero. Therefore Delta of Call - Delta of Put = 1 - 0, or by rearranging we get the equation in statement I.
Statements II and III are correct as the gamma and vega of both the spot price and the discounted price are zero. Therefore using the put-call parity, we can say Gamma of Call - Gamma of Put = 0 - 0, and Vega of Call - Vega of Put = 0 - 0 Rearranging, we get statements II and III.
Statement IV is correct because of the following relationship between theta of call and theta of put:
Theta of Put = Theta of Call + rKe

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NEW QUESTION: 3
Barak is a Security Administrator for an organization that has two sites using pershared secrets in its VPN.
The two sites are Oslo and London. Barak has just been informed that a new office is opening in Madrid, and he must enable all three sites to connect via the VPN to each other. Three Security Gateways are managed by the same SmartCenter Server, behind the Oslo Security Gateway. Barak decides to switch from pershared secrets to Certificates issued by the Internal Certificate Authority (ICA).
After creating the Madrid gateway object with the proper VPN Domain, what are Barak's remaining steps?
1. Disable "PreShared Secret" on the London and Oslo gateway objects
2. Add the Madrid gateway object into the Oslo and London's mesh VPN Community
3. Manually generate ICA Certificates for all three Security Gateways.
4. Configure "Traditional mode VPN configuration" in the Madrid gateway object's VPN screen
5. Reinstall the Security Policy on all three Security Gateways.
A. 1, 2, 4, 5
B. 1, 2, 3, 4
C. 1, 2, 3, 5
D. 1, 3, 4, 5
E. 1, 2, 5
Answer: E

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