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NEW QUESTION: 1

A. Option A
B. Option D
C. Option C
D. Option B
Answer: B
Explanation:
D. The PDC emulator is used as a reference DC to double-check incorrect passwords and it also receives new password changes. PDC Emulator is the most complicated and least understood role, for it runs a diverse range of critical tasks. It is a domain-specific role, so exists in the forest root domain and every child domain. Password changes and account lockouts are immediately processed at the PDC Emulator for a domain, to ensure such changes do not prevent a user logging on as a result of multi-master replication delays, such as across Active Directory sites.

NEW QUESTION: 2
Management has a specific responsibility to issue guidelines to staff on transacting after-hours and off-premises. Which of the following does the Model Code suggest?
A. It is not recommended that an unofficial close of business be specified for each trading day.
B. Dealing should only be allowed during normal trading hours.
C. There should be clear written guidelines regarding the limit and type of deals that are permitted after normal hours or off-premises.
D. All after-hours and off-premises transactions must be dealt exclusively with the dealer's personal mobile phones
Answer: C

NEW QUESTION: 3
William Rogers, a fixed-income portfolio manager, needs to eliminate a large cash position in his portfolio.
He would like to purchase some corporate bonds. Two bonds that he is evaluating are shown in Exhibit I.
These two bonds are from the same issuer, and the current call price for the callable bond is 100. Assume that the issuer will call if the bond price exceeds the call price.
Rogers is also concerned about increases in interest rates and is considering the purchase of a putable bond. He ants to determine how assumed increases or decreases in interest rate volatility affect the value of the straight bonds and bonds with embedded options. After Rogers performs some analysis, he and his supervisor, Sigourney Walters, discuss the relative price movement between the two bonds in Exhibit 1 when interest rates change significantly During the discussions, Rogers makes the following statements:
Statement 1: If the volatility of interest rates decreases, the value of the callable bond will increase.
Statement 2: The noncallable bond will not be affected by a change in the volatility or level of interest rates.
Statement 3: When interest rates decrease, the value of the noncallable bond increases by more than the callable bond.
Statement4: If the volatility of interest rates increases, the value of the putable bond will increase.
Walters mentors Rogers on bond concepts and then asks him to consider the pricing of a third bond. The third bond has five years to maturity, a 6% annual coupon, and pays interest semiannually. The bond is both callable and putable at 100 at any time. Walters indicates that the holders of the bond's embedded options will exercise if the option is in-the-money.

Rogers obtained the prices shown in Exhibit b using software that generates an interest rate lattice. He uses his software to generate the interest rate lattice shown in Exhibit 2.
Exhibit 2: Interest Rate Lattice (Annualized Interest Rates)

Evaluate Rogers' statements.
A. Both statements are correct.
B. Only Statement 3 is correct.
C. Only Statement 1 is correct.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Statement 1 is correct. If the volatility of interest rates decreases, the call option is less valuable, which increases the value of the callable bond. Recall that V

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