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NEW QUESTION: 1
For which reason does a switch flood a frame to all ports?
A. The source and destination MAC addresses of the frame are the same.
B. The source MAC address of the frame is unknown.
C. The frame has zero destination MAC addresses.
D. The destination MAC address of the frame is unknown.
Answer: D
NEW QUESTION: 2
Caps, floors and collars are instruments designed to:
A. Hedge interest rate risks
B. Hedge gamma risk in option portfolios
C. Hedge against credit spreads changing
D. All of the above
Answer: A
Explanation:
Explanation
Interest rate caps are effectively call options on an underlying interest rate that protect the buyer of the cap against a rise in interest rates over the agreed exercise rate. As with options, the premium on the cap depends upon the volatility of the underlying rates as one of its variables. A floor is the exact opposite of a cap, ie it is effectively a put option on an underlying interest rate that protects the buyer of the floor against a fall in interest rates below the agreed exercise rate.
A cap protects a borrower against a rise in interest rates beyond a point, and a floor protects a lender against a fall in interest rates below a point.
A collar is a combination of a long cap and a short floor, the idea being that the premium due on the cap is offset partly by the premium earned on the short floor position. Therefore a collar is less expensive than a cap or a floor.
Caps, floors and collars provide a hedge against interest rate risks, but do not protect against changes in credit spreads unless the reference rate already includes the spread (eg, by reference to the corporate bond rate), and they certainly do not have anything to do with gamma risk. Therefore Choice 'c' is the correct answer.
NEW QUESTION: 3
While using the Configuration Wizard to create a new domain, you do not set the Listen Address for the administration server and accept the default value.
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B. Server startup fails.
C. The server prompts for an address when it is started the first time.
D. The server binds to localhost.
Answer: D
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