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NEW QUESTION: 1
You can enter a derivative contract that will pay $100 at the end of a year if the price of corn exceeds
$ 3 per bushel, or $50 if it is equal to $3 per bushel or lower. The probability that corn will exceed $3 by the end of one year is 50%. The current price of the contract is $60, and interest is 5% per year. What is the optimal strategy?
A. Buy $3 per bushel worth of corn futures.
B. Invest $60 at 5% until the end of the year.
C. Enter into the derivative contract for a cost of $60.
Answer: C
Explanation:
Enter into the derivative contract for a cost of $60, for the expected payoff is 0.50 * $100 +
0 .50 * $50 = $75. That is a 25% return on your investment in one year, greater than the 5% that could be made by investing the $60 at interest. This is an example of the investment consequences of inconsistent probabilities. The present value of the contract should be $75/1.05 = $71.43. Thus, an arbitrage opportunity is present. On an expected value basis, you can buy an asset worth $71.43 for only $60.

NEW QUESTION: 2
A company has multiple AWS accounts, for various departments. One of the departments wants to share an Amazon S3 bucket with all other department.
Which solution will require the LEAST amount of effort-?
A. Create IAM users for each of the departments and configure a read-only IAM policy
B. Set the S3 bucket policy to allow cross-account access to other departments
C. Enable cross-account S3 replication for the bucket
D. Create a pre signed URL tor the bucket and share it with other departments
Answer: B

NEW QUESTION: 3
Refer to the exhibit.

Which statement about this neighbor of R1 is true?
A. R1 used ICMP to learn about this neighbor.
B. OSPFv3 adjacency will not work between link-local addresses.
C. Aggregate global addresses are always used between IPv6 neighbors.
D. OSPFv3 adjacency has been lost, which causes the neighbor to be considered Stale.
Answer: A
Explanation:
ICMP is a ping echo. IPv6 uses ICMP to learn about its neighbor.

NEW QUESTION: 4
You have installed a web server on a private network. Which type of NAT must you implement to enable access to the web server for public Internet users?
A. network object NAT
B. twice NAT
C. dynamic NAT
D. static NAT
Answer: D

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