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NEW QUESTION: 1
If the current stock price is $100, the risk-free rate of interest is 10% per year, and the value of a put option expiring in 1 year on this stock at a strike price of $110 is $5. What is the value of the call option with the same strike?
A. $4.55
B. $15
C. $10
D. $5
Answer: D
Explanation:
Explanation
We can use the put-call parity to estimate the value of the call option in this case.
The put-call parity can be expressed as:
Value of call - Value of put = Spot price - Exercise price discounted to the present Substituting the values we know:
Value of call - $5 = $100 - $110/(1 + 10%); which implies the value of a call is also $5.
Choice 'a' is therefore the correct answer.
Note about interest rates: How do we know if the interest rate provided in the question is continuous or discrete? For short periods of time, the difference between discrete and continuous exchange rates tends to be not material. For ease of computation, use discrete rates (as above), and it should allow you to answer the question.

NEW QUESTION: 2
You have an application named App1. App1 is distributed to multiple Hyper-V virtual machines in a multitenant environment.
You need to ensure that the traffic is distributed evenly among the virtual machines that host App1.
What should you include in the environment?
A. Network Controller and Windows Server Network Load Balancing (NLB) nodes
B. an RAS Gateway and Windows Server Network Load Balancing (NLB) nodes
C. an RAS Gateway and Windows Server Software Load Balancing (SLB) nodes
D. Network Controller and Windows Server Software Load Balancing (SLB) nodes
Answer: D
Explanation:
References:
https://technet.microsoft.com/en-us/library/mt632286.aspx

NEW QUESTION: 3
Which of the following is NOT an example of Integration Strategy?
A. Bottom-Up
B. Top-Down
C. Design Based
D. Big Bang
Answer: C