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NEW QUESTION: 1
Calculate the settlement amount for a buyer of a 3 x 6 FRA with a notional of $1m and contract rate of 5%.
Assume settlement rate is 6%.
A. Receive $2463
B. Receive $9434
C. Pay $9434
D. Pay $2463
Answer: A
Explanation:
Explanation
An m x n FRA is an agreement to borrow money for a period starting at time m and ending at time n at the contracted rate. Therefore, the buyer of the 3 x 6 FRA has committed to borrow $1m at the beginning of 3 months and return it at the end of 6 months, ie a total borrowing period of 3 months at a rate of 5%. Of course, the $1m is never actually exchanged, and at the beginning of the 3 month period when the next three months' interest rate is known (6%), the parties merely exchange the difference in the interest. SInce this interest was only due at the end of the 6 months and is being exchanged at the 3 month time point, it will have to be discounted to its present value.
The correct answer to this question is =(1,000,000 * (6% - 5%) * 3/12)/(1 + (6%*3/12))=$2463.05. Since interest rates rose, the borrower gained as he has the right to borrow at a lower rate, and therefore the seller will pay the borrower.
(Here:
- $1m is the notional
- 6% - 5% represents the difference between the contracted and the realized interest rates
- 3/12 is the 3 month period from month 3 to 6
- Finally, we divide by the current interest rate for 3 months to present value the payment from month 6 to month 3)
NEW QUESTION: 2
You have an Azure subscription named Subscription1. Subscription1 contains the resources in the following table.
VNet1 is in RG1. VNet2 is in RG2. There is no connectivity between VNet1 and Vnet2.
An administrator named Admin1 creates an Azure virtual machine named VM1 in RG1. VM1 uses a disk named Disk1 and connects to VNet1. Admin1 then installs a custom application in VM1.
You need to move the custom application to Vnet2. The solution must minimize administrative effort.
Which two actions should you perform? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
Explanation
You can move a VM and its associated resources to another resource group using the portal.
References: https://docs.microsoft.com/en-us/azure/virtual-machines/windows/move-vm
NEW QUESTION: 3
Your network contains an Active Directory domain. The domain contains a group named Group1.
The minimum password length for the domain is set to six characters.
You need to ensure that the passwords for all users in Group1 are at least 10 characters long. All other users must be able to use passwords that are six characters long.
What should you do first?
A. Run the Add-ADFineGrainedPasswordPolicySubject cmdlet.
B. From the Default Domain Policy, modify the password policy.
C. Run the New-ADFineGrainedPasswordPolicy cmdlet.
D. From the Default Domain Controller Policy, modify the password policy.
Answer: C
Explanation:
First we need to create a new Active Directory fine grained password policy, using New-
ADFineGrainedPasswordPolicy.
Then we can apply the new policy to Group1, using Add-
ADFineGrainedPasswordPolicySubject.
Reference:
http://technet.microsoft.com/en-us/library/ee617238.aspx
New-ADFineGrainedPasswordPolicy
Creates a new Active Directory fine grained password policy.