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NEW QUESTION: 1
What can the buyer of a 6 x 12 FRA expect to receive (or pay) if the contracted rate is 10% and the settlement rate is 12%? Assume contract notional is $100m.
A. Pay $1,000,000
B. Pay $943,396
C. Receive $1,000,000
D. Receive $943,396
Answer: D
Explanation:
Explanation
The buyer of the FRA gets to borrow $100m at 10% per annum for 6 months at the end of 6 months from the contract date. Thus, the interest due is $100m * 10% * 6/12 = $5m. However, at the end of the 6 months (when the notional borrowing period begins), the spot rate is 12%. The interest due on a borrowing at the spot rate would be $100m * 12% * 6/12 = $6m. Since the buyer gets to borrow cheaper than the going rate, he or she has made a gain of $1m on the FRA. However, this amount is not due immediately, it is due at the end of the 6 month borrowing period (ie, 12 months from the date the contract was entered into). The seller of the FRA can make the buyer whole by paying the buyer the present value of $1m due in 6 months time, which is $1m/(1 +
12%*6/12) = $1m/1.06 = $943,396.
Thus, Choice 'd' is the correct answer. Remember that the FRA gets settled at the beginning of the notional borrowing period as all future cash flows, and the applicable discount rates are known with certainty. The buyer and the seller do not need to wait for the entire period to get over first. The cash settlement allows the buyer to borrow at the market rate and still have the same net borrowing cost as he or she had initially contracted for in the FRA.

NEW QUESTION: 2
REST APIでサポートされているエンコード方式はどれですか？ （2つ選択してください。）
A. XML
B. JSON
C. YAML
D. EBCDIC
E. SGML
Answer: A,B

NEW QUESTION: 3
Refer to the exhibit.

The Cisco Nexus 1000V in the VMware vSphere solution effectively creates an additional access layer in the virtualized data center network; which of the following 1000V characteristics can the designer take advantage of?
A. If upstream access switches do not support vPC or VSS the dual-homed ESX host traffic can still be distributed using virtual port channel host mode using subgroups automatically discovered through CDP
B. Offloads the STP requirement from the external Access layer switches
C. Allows transit traffic to be forwarded through the ESX host between VMNICs
D. Can be divided into multiple virtual device contexts for service integration, enhanced security, administrative boundaries, and flexibility of deployment
Answer: A

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