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NEW QUESTION: 1
[According to the PRMIA study guide for Exam 1, Simple Exotics and Convertible Bonds have been excluded from the syllabus. You may choose to ignore this question. It appears here solely because the Handbook continues to have these chapters.] The use of numerical pricing methods over analytical methods for valuing exotic options is resorted to allow for which of the following reasons:
I. Efficient valuation
II. Allowing for stochastic volatility
III. Accommodating discontinuous asset prices
IV. Allowing for complex payoffs
A. I, II, III and IV
B. II, III and IV
C. I, II and III
D. I
Answer: B
Explanation:
Explanation
Analytical methods are more 'efficient' than numerical methods in terms of computing power required, consistency of results and providing clarity on the inputs driving the results. Therefore 'efficient valuation' is not a reason to adopt numerical pricing methods over analytical methods.
It is much easier to incorporate changing stochastic volatility, discontinuous asset prices or other complex payoffs using numerical pricing methods. So these certainly represent good reasons to use numerical pricing methods for valuing exotics.
Therefore Choice 'b' is the correct answer.

NEW QUESTION: 2
What security problem is most likely to exist if an operating system permits objects to be used sequentially by multiple users without forcing a refresh of the objects?
A. Denial of service through a deadly embrace.
B. Disclosure of residual data.
C. Data leakage through covert channels.
D. Unauthorized obtaining of a privileged execution state.
Answer: B
Explanation:
This question is asking you to consider the effects of object reuse. Object reuse is "reassigning to subject media that previously contained information. Object reuse is a security concern because if insufficient measures were taken to erase the information on the media, the information may be disclosed to unauthorized personnel."
This concept relates to Security Architecture and Design, because it is in level C2:
Controlled Access Protection, of the Orange Book, where "The object reuse concept must be invoked, meaning that any medium holding data must not contain any remnants of information after it is release for another subject to use."
REFERENCE:
AIO Version 5 (Shon Harris), page 360
and
TIPTON, Hal, (ISC)2, Introduction to the CISSP Exam presentation.

NEW QUESTION: 3
Refer to the exhibit.

A user runs a full scan on a system and is confused by the "Files trusted" count. Which option will result in the files being left unscanned?
A. Enabling the "Only when files are executed" setting in the Virus and Spyware Protection policy.
B. Enabling the "Do not scan files when trusted processes access the files" setting in the Virus and Spyware Protection policy.
C. Enabling Insight in the Virus and Spyware Protection policy.
D. Enabling the file cache settings in the Virus and Spyware Protection policy.
Answer: C

NEW QUESTION: 4
What was the most important loss for Bankers Trust?
A. Money due to unfavourable market moves
B. Time spent on legal proceedings in courts
C. Loss of its' reputation due to actions seen as detrimental to their clients
D. Loss of market share due to their licenses being revoked
Answer: C