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NEW QUESTION: 1
A FortiGate has two default routes:
All Internet traffic is currently using port1. The exhibit shows partial information for one sample session of Internet traffic from an internal user:
What would happen with the traffic matching the above session if the priority on the first default route (IDd1) were changed from 5 to 20?
A. Session would remain in the session table and its traffic would be shared between port1 and port2.
B. Session would be deleted, so the client would need to start a new session.
C. Session would remain in the session table and its traffic would keep using port1 as the outgoing interface.
D. Session would remain in the session table and its traffic would start using port2 as the outgoing interface.
Answer: C
NEW QUESTION: 2
Refer to the exhibit. After the BGP TCP negotiation between Router A and Router B, what will be the value of the keepalive timer and the hold-down timer, respectively?
A. 3 seconds and 30 seconds
B. 10 seconds and 10 seconds
C. no value, because BGP negotiation will not be successful
D. 10 seconds and 9 seconds
E. 60 seconds and 180 seconds
F. 3 seconds and 9 seconds
G. 10 seconds and 30 seconds
H. 3 seconds and 10 seconds
Answer: F
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
Which of the following are true:
I. Delta hedges need to be rebalanced frequently as deltas fluctuate with fluctuating prices.
II. Portfolio managers are right to focus on primary risks over secondary risks.
III. Increasing the hedge rebalance frequency reduces residual risks but increases transaction costs.
IV. Vega risk can be hedged using options.
A. I, II, III and IV
B. I and II
C. II, III and IV
D. I, II and III
Answer: A
Explanation:
Explanation
Delta is non-linear with respect to prices for a number of securities such as bonds, options and other derivatives. It changes with changes in prices, and any hedge initially undertaken becomes quickly mismatched. Therefore delta hedges need to be managed quite actively and kept up-to-date. Therefore I is true.Primary risks comprise most of the risk in a position, and therefore portfolio managers are right to focus on them over secondary risks. Therefore II is true.The greater the hedge rebalance frequency, the lower is the hedge mismatch at any point in time, and therefore residual risks would be lower. However, rebalancing hedges requires rebalance trades to be done, and these involve transaction costs. Generally, a reasonable balance needs to be struck between the frequency of rebalances (a lower frequency increases residual risk, but this residual risk is not directionally biased) and the costs of rebalancing. III is correct.Vega risk is the risk arising due to changes in prices due to changes in volatility. Options carry vega risk. Therefore any hedges against vega risks can only be obtained using other options positions. (Vega risk may also be hedged using other volatility based products, eg an OTC volatility swap, or a VIX futures type product.)
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