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NEW QUESTION: 1
During the execution of a dialog transaction, you receive an error message about a failed authority check. How could you analyze this? (Choose two)
A. Create a Breakpoint on Statement AUTHORITY-CHECK and watch out for return codes other than 0.
B. Use the F1 help to check the message ID and then apply the where-used list in transaction SE91.
C. Analyze the entry in transaction SU53 (Authorization Data for User) and compare with the User Master Record.
D. Get the name of the authorization object from the F1 help, navigate to its definition (in SE80) and apply the where-used list.
Answer: A,C
NEW QUESTION: 2
A user is operating a virtual machine (VM) and discovers it has been infected with malware. Which of the following applies?
A. The VM will crash and cause irreparable damage to the host PC.
B. The host computer will quarantine the VM automatically.
C. The VM can be shut down with no harm to the host PC.
D. The host computer will automatically delete the VM.
Answer: C
Explanation:
One of the benefits of virtual machine is that it can be shut down without harming the host PC. It uses virtual resources that are mapped to the hardware resources. When the virtual machines shuts down, it might corrupt virtual resource, not the physical ones.
NEW QUESTION: 3
Which of the following statements is (are) true with respect to the effects embedded options would have on the price and the yield of the underlying bond?
I). The yield on putable bonds will always be lower than the yield on an otherwise identical option free bond.
II). The greater the interest rate volatility assumed, the lower will be the price of an option free bond.
III). Option adjusted spread, in general, is simply the compensation to an investor for bearing credit and liquidity risk.
IV). For an option free bond, the zero volatility (or static) spread will be higher than its corresponding option adjusted spread.
A. I and III.
B. II and IV.
C. I, II and IV.
Answer: A
Explanation:
I is true because the price of putable bonds are always more expensive than non-putable bonds (this is because the put in the bond would be an attractive feature to the investor - i.e. He has to pay for it). Consequently, this higher price for a putable bond will translate into a lower yield.
II is incorrect because interest rate volatility only has an impact on the embedded options. In other words, as the interest rate volatility is assumed to increase, both the call and the put values will increase.
However, in the absence of these options, the bond price will not be affected
III is true because option adjusted spread is the spread that is left once the adverse effects that a call option will have on the investor's return, have been stripped away.
IV is incorrect because for an option free bond, the zero volatility (or static) spread and its corresponding option adjusted spread will be equal. The only difference between the two measures is the incremental yield due to call risk. Hence, in the absence of this call risk, the two measures of spread will produce the same result.
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