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NEW QUESTION: 1
[According to the PRMIA study guide for Exam 1, Simple Exotics and Convertible Bonds have been excluded from the syllabus. You may choose to ignore this question. It appears here solely because the Handbook continues to have these chapters.] Which of the following statements is true:
I. Knock-out options start lifeless and convert to a plain vanilla option when the barrier is hit II. Barrier options are cheaper than equivalent vanilla options III. Average price options are more expensive than equivalent vanilla options IV. Digital options have a high gamma close to the strike price
A. II and IV
B. II, III and IV
C. I and III
D. I, II and IV
Answer: A
Explanation:
Knock-out options start as plain vanilla options and are 'knocked-out', ie cease to exist, when the barrier is hit.
Knock-in options start lifeless and 'kick-in', ie come into play as plain vanilla options when the barrier is hit.
Therefore statement I is not correct.
Barrier options are certainly cheaper than equivalent vanilla options because vanilla options have a larger range of prices over which they pay out. Therefore statement II is correct.
Statement III is not correct. Average price options, also called Asian options, are less attractive to a buyer of options and therefore they are cheaper and not more expensive than vanilla options. This is because average prices are less volatile, and also when compared to a strip of equivalent vanilla options, some of the individual vanilla options in the strip may pay out whereas on the average nothing may pay out.
Digital options have a very high gamma close to the strike price as the option payout becomes uncertain and fluctuates sharply between 0 and 1. Therefore statement IV is correct.
NEW QUESTION: 2
Drag and Drop Question
An organization requests the following behavior for a case type that allows customers to place orders for fulfillment.
When the customer logs in:
- The application identifies the customer upon login.
- The case type lists the last 10 orders placed by the customer.
- The customer can select one of the previous 10 orders as the basis
for the current order.
Select each piece of Information on the left and drag it to the appropriate Clipboard Location.
Answer:
Explanation:
NEW QUESTION: 3
A 3-Ber e-commerce web application is currently deployed on-premises, and will be migrated to AWS for greater scalability and elasticity. The web tier currently shares read-only data using a network distributed file system. The app server tier uses a clustering mechanism for discovery and shared session state that depends on IP multicast. The database tier uses shared-storage clustering to provide database failover capability, and uses several read slaves for scaling. Data on all servers and the distributed file system directory is backed up weekly to off-site tapes.
Which AWS storage and database architecture meets the requirements of the application?
A. Web servers: store read-only data in S3, and copy from S3 to root volume at boot time. App servers:
share state using a combination of DynamoDB and IP unicast.
Database: use RDS with multi-AZ deployment and one or more Read Replicas. Backup: web and app servers backed up weekly via AMIs, database backed up via DB snapshots.
B. Web servers: store read-only data in S3, and copy from S3 to root volume at boot time. App servers:
share state using a combination of DynamoDB and IP unicast.
Database: use RDS with multi-AZ deployment and one or more read replicas.
Backup: web servers, app servers, and database backed up weekly to Glacier using snapshots.
C. Web servers: store read-only data in an EC2 NFS server, mount to each web server at boot time. App servers: share state using a combination of DynamoDB and IP multicast.
Database: use RDS with multi- AZ deployment and one or more Read Replicas. Backup: web and app servers backed up weekly via AMIs, database backed up via DB snapshots.
D. Web servers: store read-only data in S3, and copy from S3 to root volume at boot time App servers:
share state using a combination of DynamoDB and IP unicast. Database: use RDS with multi-AZ deployment.
Backup: web and app servers backed up weekly via AMIs, database backed up via DB snapshots.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
https://d0.awsstatic.com/whitepapers/Storage/AWS%20Storage%20Services%20Whitepaper-v9.pdf Amazon Glacier doesn't suit all storage situations. Listed following are a few storage needs for which you should consider other AWS storage options instead of Amazon Glacier.
Data that must be updated very frequently might be better served by a storage solution with lower read/ write latencies, such as Amazon EBS, Amazon RDS, Amazon DynamoDB, or relational databases running on EC2.
