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NEW QUESTION: 1
Which of the following statements is not correct with respect to a European call option:
A. A increase in the risk-free rate of interest always increases the value of the option
B. An increase in the time to expiry always increases the value of the option
C. An increase in the price of the underlying always increases the value of the option
D. An increase in the volatility of the underlying always increases the value of the option
Answer: B
Explanation:
Explanation
An increase in volatility increases the value of the option, and so do increases in the price of the underlying and the risk free rate. However, since a European option can only be exercised at expiry, an increase in the time to expiry may not necessarily increase the value of the option as it may increase the uncertainty around a more certain payout.
Consider the extreme case of a deep in the money European call option that has 1 day left to expiry, and a payout is certain. Now imagine the time to expiry is increased by say, 6 months. Now the payout is no longer certain as no one knows what the value of the underlying will end up at after 6 months. In such a case, the value of the option would decline. But this applies only to a European option. An American option, which can be exercised any time, will not be affected by this reasoning.

NEW QUESTION: 2
The PRBS can be used to test whether an SDH service is normal and whether the protection switching function is normal.
A. TRUE
B. FALSE
Answer: A

NEW QUESTION: 3
You have a computer joined to a domain that runs Windows 7. Your company network contains a Windows Server 2008 R2 remote access server. The server is configured as a Network Access Protection (NAP) enforcement point.
You set the startup type of the NAP Agent service to Automatic on the computer.
You need to complete the configuration of the computer as a NAP client.
What should you do?
A. From the NAP Client Configuration console,configure the user interface settings.
B. From the command line of the computer, enable the DHCP Quarantine Enforcement Client by using the netsh command.
C. From the NAP Client Configuration console, configure the Health Registration settings.
D. From the command line of the computer, enable the DHCP Quarantine Enforcement Client by using the ipconfig command.
Answer: B
Explanation:
Explanation/Reference:
Explanation:

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