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NEW QUESTION: 1
A portfolio manager desires a position of $10m in physical gold, but chooses to get the exposure using gold futures to conserve cash. The volatility of gold is 6% a month, while that of gold futures is 7% a month. The covariance of gold and gold futures is 0.00378 a month. How many gold contracts should he hold if each contract is worth $100k in gold?
A. 0
B. 1
C. 2
D. 3
Answer: A
Explanation:
Explanation
The optimal hedge ratio answers the question of how much of the hedge to buy to hedge a given position.
If 103.11.e1 is the standard deviation of the asset to be hedged, and 103.11.e2 is the standard deviation the asset being used to hedge against price movements in x, then the minimum variance hedge ratio is given by the expression 103.11.e3. In this question, correlation = 0.00378/(6%*7%) = 0.9. The minimum variance hedge ratio is given by (6%/7%)*0.9 = 0.77 He should therefore hold 0.77 x $10m /$100k = 77 contracts.
[We can also do a direct covar based calculation for the min variance hedge ratio as follows:

103.11.a3
= 0.00378 / (0.07 * 0.07) = 0.7714]

NEW QUESTION: 2
Which two StackWise configuration setting types are applied at the system level? (Choose two.)
A. SNMP settings
B. speed/duplex settings
C. port-security settings
D. VLAN settings
E. 802.1x settings
Answer: A,D
Explanation:
Explanation/Reference:
Reference: https://www.cisco.com/c/en/us/td/docs/switches/lan/catalyst3750x_3560x/software/release/12-
2_55_se/configuration/guide/3750xscg/swstack.pdf

NEW QUESTION: 3
In a typical swap transaction, two parties agree to exchange:
A. notional principal amounts.
B. amortization schedules.
C. maturity dates of obligations.
D. cash flows at future points in time.
Answer: D

NEW QUESTION: 4
汎用モジュールはどのタイプのパラメータを提供しますか？該当するものをすべて選択。
A. 出力
B. 例外
C. 入力/出力（変更）
D. 戻り値
E. 入力
Answer: A,B,C,E