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NEW QUESTION: 1
An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?

A) B)
C)

D)
A. Option C
B. Option D
C. Option B
D. Option A
Answer: C

NEW QUESTION: 2
The theta of a delta neutral options position is large and positive. What can we say about the gamma of the position?
A. The gamma must be large and negative
B. The gamma must be small and positive
C. The gamma must be small and negative
D. The gamma must be large and positive
Answer: A
Explanation:
Explanation
The relationship between the value of an option, and its delta, gamma and theta is given by rV = + rS +
0.5(S)2, where V is the value of the option, r the risk-free rate, S the spot price of the underlying, and , & are the respective Greeks.
For a delta neutral portfolio, = 0 and this equation reduces to rV = + 0.5(S)2. Now rV is generally a small number, which means that if is large and positive, must be large and negative to offset that. Therefore Choice
'b' is the correct answer.

NEW QUESTION: 3
Company Background Corporate Information
Proseware, Inc. manufactures medical equipment.
Physical Locations
Proseware has an office in Chicago. The Chicago office has 150 employees.
Existing Environment Existing Licensing Solution
Proseware purchases Microsoft software licenses under OEM agreements and Open License agreements.
Existing IT Environment
Each employee has a dedicated desktop. The desktops run different run different versions of Microsoft
Windows and different versions of Microsoft Office.Business Requirements
Planned Changes
The company plans to implement Windows SharePoint Services.
During the next two years, the company plans to standardize the operating system versions to Windows XP
Professional. There are no plans to upgrade to Windows Vista during this time period.
Proseware has determined that retaining new version rights for server products is not necessary.
During the next three years, Proseware plans to make the following changes:
Replace all desktops
Upgrade e-mail services to Exchange Server 2007
Upgrade all servers to the current version of Windows Server.
Problem Statements
The company's software purchases are unplanned and improperly documented.
Business Goals
Proseware has the following business goals: Own software licenses perpetually Standardize on the current version of desktop applications Reduce the upfront cost of upgrading desktop applications Allow flexibility to purchase new versions of server licenses, with or without Software Assurance Provide all employees access to Unifed Messaging in Exchange Server 2007 Have easy access to verifiable license documentation
Question
Proseware expresses interest in purchasing Office with Software Assurance. You need to recommend the Volume Licensing program that allows for prorated annual pricing. Which program should you recommend?
A. Select License
B. Open License
C. Open Value Subscription
D. Open Value Company-wide
Answer: D