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NEW QUESTION: 1
Which of the following are valid approaches to calculating potential future exposure (PFE) for counterparty risk:
I. Add a percentage of the notional to the mark-to-market value
II. Monte Carlo simulation
III. Maximum Likelihood Estimation
IV. Parametric Estimation
A. I, III and IV
B. III and IV
C. All of the able
D. I and II
Answer: D
Explanation:
Explanation
When a derivative position is entered into, its mark-to-market value is generally close to zero (though the notional may be high). With the passage of time, the derivative's value fluctuates in an unpredictable way, creating a counterparty exposure that may be difficult to estimate and risk manage. Counterparty risk in such cases is estimated based on Potential Future Exposure, which may be calculated using either:
a) Take the mark-to-market at present, and add a certain percentage of the notional, or b) Perform a Monte Carlo simulation, capturing the stochastic nature of the PFE.
Therefore I and II are valid choices. MLE and parametric estimation are not methods for calculating PFE.
NEW QUESTION: 2
The recent decline in land prices has hurt many institutions that had invested heavily in real estate. Last year, before the decline began, a local college added 2,000 acres to its holdings. The college, however, did not purchase the land but received it as a gift. Therefore, the price decline will probably not affect the college.
Which of the following, if true, casts most doubt on the conclusion above?
A. Last year, the college paid no property taxes on land occupied by college buildings but instead paid fees to compensate the local government for services provided.
B. The 2,000 acres that the college was given last year are located within the same community as the college itself.
C. Last year, the amount that the college allocated to pay for renovations included money it expected to receive by selling some of its land this year.
D. The college usually receives more contributions of money than of real estate.
E. Land prices in the region in which the college is located are currently higher than the national average.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
You intend to introduce ordering in message processing for your JMS destination by creating a destination key.
Which statement is true about the JMS Destination Key configuration? (Choose the best answer.)
A. A JMS Destination Key cannot be used to sort messages in a Last In First Out order.
B. A JMS Destination Key allows a user-defined sort key.
C. A JMS Destination Key cannot be specified using WLST.
D. A Destination Key can be applied to the message body.
Answer: C
Explanation:
Explanation/Reference:
The WebLogic Server Administration Console enables you to configure, modify, target, and delete destination key resources in a system module.
Incorrect Answers:
B: As messages arrive on a specific destination, by default they are sorted in FIFO (first-in, first-out) order, which sorts ascending based on each message's unique JMSMessageID. However, you can use a destination key to configure a different sorting scheme for a destination, such as LIFO (last-in, first-out).
C: Attribute Sort Key: The message sort key or the name of a message header field on which to sort.
Message header field keys start with the letters JMS and ignore the key type setting.
Valid values only (user-defined sort key not possible):
JMSMessageID
JMSTimestamp
JMSCorrelationID
JMSPriority
JMSExpiration
JMSType
JMSRedelivered
JMSDeliveryTime
Reference: https://docs.oracle.com/cd/E13222_01/wls/docs90/jms_admin/basic_config.html#1105573
NEW QUESTION: 4
Multiple Approvers have received your request for approving a discount that was invoked by the approval process? Approver A rejects your request. Approver B accepts your request after Approver A rejects it. Is your request approved or denied. (Assume you need only one person to approve out of all the approvers)
A. Denied
B. Approved
C. Approval process is revoked
D. Approval changes to pending stage due to conflict within approvers
Answer: A
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