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NEW QUESTION: 1
For an option position with a delta of 0.3, calculate VaR if the VaR of the underlying is $100.
A. 0
B. 1
C. 33.33
D. 2
Answer: D
Explanation:
Explanation
The first order approximation of the VaR of an option position is nothing but the VaR of the underlying multiplied by the option's delta. This is intuitive because the delta is the sensitivity of the option price to changes in the prices of the underlying, and in this case since the delta is 0.3 and the underlying's VaR is $100, the VaR of the options position is 0.3 x $100 = $30. Therefore Choice 'c' is the correct answer.
(Note that the second order approximation of the VaR of an options position considers the option gamma too, and VaR reduces if gamma increases.)
NEW QUESTION: 2
If the IP address of one of the parties establishing the IPSec VPN tunnel is not fixed, which of the following configuration methods cannot be applied in this scenario?
A. Pre-share key authentication in aggressive mode
B. Specify the peer address when configuring IKE
C. Name authentication in aggressive mode
D. Strategy template
Answer: B
NEW QUESTION: 3
The AC6605 supports three ways to establish AP and AC interworking. What are the options (Select 3 Answers)?
A. Find the AP through multicast and automatically go online
B. Offline increase AP
C. Automatically discover AP and go online normally
D. Automatically discover the AP and confirm the online
Answer: B,C,D
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