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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 must not have related contacts
B. Each contact must have a related account
C. Each account may or may not have related contacts
D. Each contact may or may not have related account
Answer: C

NEW QUESTION: 3
You are network engineer at Your company. Please point out two functions of Cisco Security Agent.
A. Control of executable content
B. Resource Protection
C. Authentication
D. Spam filtering
Answer: A,B

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 Router
B. Customer Edge Router
C. Non-customer Edge Router
D. Provider Edge Router
E. Provider Edge Provider Router
Answer: A