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NEW QUESTION: 1
A short position in a 3 x 6 FRA is equivalent to which of the following?
A. Borrow now for 3 months and lend 3 months hence for 3 months
B. Lend now for 3 months and borrow now for 6 months
C. Borrow now for 3 months and lend now for 6 months
D. Do a fixed for floating interest rate swap for 3 months
Answer: C
Explanation:
Explanation
The buyer of an FRA is considered 'long', and a 3 x 6 FRA allows him or her to borrow funds at the agreed rate starting at the end of month 3 till the end of month 6. (ie, 3 x 6 indicates that the borrowing period commences at 3 months, and ends at 6 months, for a period of 6 - 3 = 3 months). The seller has exactly the opposite position, ie he or she is committed to lend funds at the agreed rate for 3 months starting at the end of
3 months from today (for a 3 x 6 FRA). [Note that the obligation to borrow or lend in and FRA does not mean that either parties will actually do that, instead they will just exchange cash flows to get to get to an identical economic situation.] Since the seller, or the short, is committed to lending in the future starting 3 months from now, it is akin to borrowing now for 3 months, and investing the borrowed amount for 6 months. During the first 3 months, the amounts borrowed and lent 'cancel' out (conceptually) and after the 3 months the short returns the amount borrowed, and is left with just the net amount lent, ie the FRA.
Thus the correct answer is Choice 'd'. Choice 'b' describes the position of the FRA buyer. Choice 'a' and Choice 'c' are nonsensical.
NEW QUESTION: 2
Management wants the ability to transfer more data over a low bandwidth network connection. Which action would satisfy the request?
A. Modify the SnapMirror schedules.
B. Enable version flexible replication with a SnapMirror policy.
C. Disable throttle with a SnapMirror policy.
D. Enable network compression with a SnapMirror policy.
Answer: D
NEW QUESTION: 3
If any type of issue or risk (or aggregation of them) cannot be resolved within the tolerances set by the Project Board, which of the following products would first be sent to the Project Board to inform them of this deviation?
A. Exception Report
B. Updated Risk and Issue Registers
C. End Stage Report
D. Highlight Report
Answer: A
NEW QUESTION: 4
You need to select and configure compute resources for a set of batch processing jobs. These jobs take around 2 hours to complete and are run nightly. You want to minimize service costs. What should you do?
A. Select Compute Engine. Use VM instance types that support micro bursting.
B. Select Google Kubernetes Engine. Use a three-node cluster with micro instance type.
C. Select Google Kubernetes Engine. Use a single-node culster with a small instance type.
D. Select Compute Engine. Use preemptible VM instances of the appropriate standard machine type.
Answer: D