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NEW QUESTION: 1
Satish Dhawan, a veteran fixed income trader is conducting interviews for the post of a junior fixed income trader. He interviewed four candidates Adam, Balkrishnan, Catherine and Deepak and following are the answers to his questions.
Question 1: Tell something about Option Adjusted Spread
Adam: OAS is applicable only to bond which do not have any options attached to it. It is for the plain bonds.
Balkishna: In bonds with embedded options, AS reflects not only the credit risk but also reflects prepayment risk over and above the benchmark.Catherine: Sincespreads are calculated to know the level of credit risk in the bound, OAS is difference between in the Z spread and price of a call option for a callable bond.
Deepark: For callable bond OAS will be lower than Z Spread.
Question 2: This is a spread that must be added to the benchmark zero rate curve in a parallel shift so that the sum of the risky bond's discounted cash flows equals its current market price. Which Spread I am talking about?
Adam: Z Spread
Balkrishna: Nominal Spread
Catherine: Option Adjusted Spread
Deepark: Asset Swap Spread
Question 3: What do you know about Interpolated spread and yield spread?
Adam: Yield spread is the difference between the YTM of a risky bond and the YTM of an on-the-run treasury benchmark bond whose maturity is closest, but not identical to that of risky bond. Interpolated spread is the spread between the YTM of risky bond and the YTM of same maturity treasury benchmark, which is interpolated from the two nearest on-the-run treasury securities.
Balkrishna: Interpolated spread is preferred to yield spread because the latter has the maturity mismatch, which leads to error if the yield curve is not flat and the benchmark security changes over time, leading to inconsistency.
Catherine: Interpolated spread takes account the shape of the benchmark yield curve and therefore better than yield spread.
Deepak: Both Interpolated Spread and Yield Spread rely on YTM which suffers from drawbacks and inconsistencies such as the assumption of flat yield curve and reinvestment at YTM itself.
Then Satish gave following information related to the benchmark YTMs:

An investor decides to invest in the bond futures and has an outlook that the term structure curve would steepen. What should be his trading strategy?
A. Buy futures on short-maturity underlying, Sell futures on long-maturity underlying.
B. Sell futures on short-maturity underlying, Sell futures on long-maturity underlying and Buy futures on middle-maturity underlying.
C. Buy futures on short-maturity underlying, Buy futures on long-maturity underlying and Sell futures on middle-maturity underlying
D. Sell futures on short-maturity underlying, Buy futures on long-maturity underlying
Answer: D

NEW QUESTION: 2
Which utility on Windows 2003 and Windows 2008 can be used to collect information about firmware and driver versions for an Emulex LP1xxxx/LPe1xxx HBA?
A. SANutil
B. HBAnywhere
C. fcp config
D. EMutil
E. SANsurfer
Answer: B

NEW QUESTION: 3
The "General Settings" section of a performance form template is where foundational pieces that allow a form to function correctly are defined.
Which of the options below are defined in General Settings for a Form Template?
Please select all the correct answers that apply.
Response:
A. Rating Scale
B. Route Map
C. Stack ranking employees on competency sections
D. Permission to enable/disable buttons visible on a performance form to end-users
Answer: A,B,C,D

NEW QUESTION: 4
What is used to protect programs from all unauthorized modification or executional interference?
A. Security labels
B. A security perimeter
C. A protection domain
D. Abstraction
Answer: C
Explanation:
A protection domain consists of the execution and memory space assigned to each process. The purpose of establishing a protection domain is to protect programs from all unauthorized modification or executional interference. The security perimeter is the boundary that separates the Trusted Computing Base (TCB) from the remainder of the system. Security labels are assigned to resources to denote a type of classification. Abstraction is a way to protect resources in the fact that it involves viewing system components at a high level and ignoring its specific details, thus performing information hiding. Source: KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, John Wiley & Sons, 2001, Chapter 5: Security Architecture and Models (page 193).