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NEW QUESTION: 1
For a US based investor, what is the 10-day value-at risk at the 95% confidence level of a long spot position of EUR 15m, where the volatility of the underlying exchange rate is 16% annually. The current spot rate for EUR is 1.5. (Assume 250 trading days in a year).
A. 0
B. 1
C. 2
D. 3
Answer: D
Explanation:
Explanation
The VaR for a spot FX position is merely a function of the standard deviation of the exchange rate. If V be the value of the position (in this case, EUR 15m x 1.5 = USD 22.5m), z the appropriate z value associated with the level of confidence desired, and be the standard deviation of the portfolio, the VaR is given by ZV.
In this case, the 10-day standard deviation is given by SQRT(10/250)*16%. Therefore the VaR is
=1.645*15*1.5*(16%*SQRT(10/250)) = USD 1.1844m. Choice 'c' is the correct answer.
NEW QUESTION: 2
Which relationship can be selected in a custom report type where Accounts is the primary object and contacts is the related object?
A. Each account may or may not have related contacts
B. Each account must not have related contacts
C. Each contact may or may not have related account
D. Each contact must have a related account
Answer: A
NEW QUESTION: 3
You are network engineer at Your company. Please point out two functions of Cisco Security Agent.
A. Resource Protection
B. Spam filtering
C. Control of executable content
D. Authentication
Answer: A,C
NEW QUESTION: 4
What is the term that refers to a device that has no Customer Equipment directly connected to it in a Service Provider network?
A. Provider Edge Router
B. Provider Router
C. Non-customer Edge Router
D. Customer Edge Router
E. Provider Edge Provider Router
Answer: B
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