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NEW QUESTION: 1
Bubba wants to buy a $4 convertible preferred with that has a $50 par value and is exchangeable for common stock at $47.50. If the preferred stock is trading at 52, what does Bubba calculate as the common stock price in order to be at parity with the preferred?
A. 47.50
B. a little more than 54.50
C. 52.00
D. a little less than 49.38
Answer: D
Explanation:
Explanation/Reference:
Explanation: a little less than 49.38. Bubba needs a calculator to divide the par value of the preferred stock by the price of the common stock. He then divides the result into the price at which the preferred stock is trading.50 divided by 47.50 = 1.05352 divided by 1.053 = 49.38.
NEW QUESTION: 2
Mark Waiters' risk aversion is relatively high compared to other individual investors. Waiters is interested in generating some income on his equity portfolio. Walters decides to establish a covered call position on CGF stock and simultaneously establish a protective put position on HSD stock. After establishing the covered call and protective put positions, which of the following would least likely describe Walters' portfolio, relative to the positions before adding the options?
A. The HSD position will have lower upside potential and less downside risk.
B. The HSD position will have a higher break even price and less downside risk.
C. The CGF position will have a lower break even price and more upside potential.
Answer: C
NEW QUESTION: 3
Which of the following is NOT a disadvantage of symmetric cryptography when compared with asymmetric ciphers?
A. Provides Limited security services
B. Speed
C. Large number of keys are needed
D. Has no built in Key distribution
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Symmetric cryptography is much faster than asymmetric systems, and is difficult to crack if a large key size is used.
Incorrect Answers:
A, B, D: Symmetric cryptography provides confidentiality, but not authenticity or nonrepudiation, and therefore deemed limited. It requires a secure mechanism to deliver keys correctly. Each pair of users needs a unique key. Therefore, as the number of individuals increase, so does the number of keys.
These are all considered weaknesses of symmetric cryptography.
References:
Harris, Shon, All In One CISSP Exam Guide, 6th Edition, McGraw-Hill, 2013, p. 783
NEW QUESTION: 4
A nurse in a newborn nursery is caring for a neonate. On assessment, the infant is exhibiting signs of
cyanosis, tachypnea, nasal flaring, and grunting. Respiratory distress syndrome is diagnosed and the
physician prescribes surfactant replacement therapy. The nurse prepares to administer this therapy by:
A. Intramuscular
B. Instillation of the preparation into the lung through an endotracheal tube
C. Subcutaneous
D. Intravenous
Answer: B
Explanation:
The nurse prepares to administer this therapy by instillation of the preparation into the lung
through an endotracheal tube. In this therapy, an exogenous surfactant preparation is instilled into the
lungs through an endotracheal tube. The aim of therapy in respiratory distress syndrome is to support the
disease until the disease runs its course, with the subsequent development of surfactant. The infant may
benefit from surfactant replacement therapy.
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