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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.] A company that uses physical commodities as an input into its manufacturing process wishes to use options to hedge against a rise in its raw material costs. Which of the following options would be the most cost effective to use?
A. Vanilla options
B. Correlation options
C. Average rate options
D. Writer-extendible options
Answer: C
Explanation:
Explanation
Average rate options will be the most cost effective in this scenario as they are cheaper than vanilla options.
Writer extendible options on commodities will be even more expensive, and correlation products are irrelevant to the manufacturing company's hedging needs.

NEW QUESTION: 2

A. 0
B. 1
C. 2
D. 3
Answer: B

NEW QUESTION: 3
Nat Smart was employed as an investment adviser representative and sold many of his clients on a
municipal bond fund of which he was fond, telling his clients that the returns earned on it were completely
free from federal taxation. Unfortunately, he had some unhappy clients when, at the end of the year, they
discovered that they had to pay federal tax on the capital gains earned by the fund when it sold some of
the bonds it held. Nat was as surprised as they were. Based on these facts, which of the following
statements is necessarily true?
I. Because Nat was as surprised as they were, he is guiltless.
II. Nat is subject to civil liability payments.
III. Nat will be subject to the criminal penalties for fraud and may spend time in prison.
A. II and III only
B. III only
C. I only
D. II only
Answer: D
Explanation:
Only Selection II is an accurate statement. In telling his clients that the returns earned on a
municipal bond fund were totally tax-free, Nat misled the clients, whether intentionally or not. This
constitutes fraud, and Nat is, at a minimum subject to civil liability payments, so this is "necessarily" true.
Whether or not Nat will be subject to criminal penalties for fraud and spend time in prison depends on his
ability to prove that he had no knowledge that he was misleading his clients.

NEW QUESTION: 4
A customer reports that the representative who took their order earlier in the day incorrectly entered the order.
You need to determine which customer service representative entered the order and if any modifications to the order have been made.
What are two possible ways to achieve the goal? Each correct answer presents a complete solution.
A. Run the Order events report.
B. View the Order scripts pages.
C. View the Order events history inquiry page.
D. View the Order hold page.
E. Run the Order holds report.
Answer: A,C
Explanation:
https://community.dynamics.com/ax/b/dynamicsaxtipoftheday/archive/2014/04/22/track-all- changes-to-orders-using-order-events

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