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NEW QUESTION: 1
An American importer expects to pay a British supplier 500,000 British pounds in three months. Which of
the following hedges is best for the importer to fix the price in dollars?
A. Buying British pound put options.
B. Selling British pound put options.
C. Selling British pound call options.
D. Buying British pound call options.
Answer: D
Explanation:
Choice "a" is correct. To fix a price in dollars to buy British pounds, British pound call options should be
purchased. Call options would allow, but not require, the purchaser of the call to acquire the currency
(British pounds) for a specified price at or before a specified time in the future. If the price goes down, the
purchaser (the importer) would exercise the options; if not, the purchaser (importer) would buy the British
pounds in the market and let the options expire. British pound futures could also be used, but that was not
one of the choices listed. Choice "b" is incorrect. Buying British pound put options would allow, but not
require, the purchaser of the put to sell the currency for a specified price at a specified time in the future.
Since the importer needs British pounds, buying put options would not work. The importer needs to end
up with British pounds. Choice "c" is incorrect. Selling British pound put options would not work. The
importer needs to end up with British pounds. Selling put options could work, but the option would be
exercised, or not, by the purchaser and not by the importer. If the options were not exercised, the importer
could end up with nothing (other than the option premium). Choice "d" is incorrect. Selling British pound
call options would not work. The importer needs to end up with British pounds; if call options are sold, the
other party can exercise the options or let them expire, and if the options were exercised, the importer
would have to supply the British pounds. This answer is backwards.

NEW QUESTION: 2
A popular restaurant in town has begun depositing less cash than it has in prior years. In a review of the customer's accounts, you notice that credit card receipts have increased with no .
The account officer discovers that the restaurant has installed a privately-owned automated teller machine (ATM) onsite and has begun construction on a patio dining area.
Which red flag should trigger additional investigation?
A. Privately-owned ATM
B. Increased credit card receipts
C. Lower cash deposits
D. Construction of the new patio dining area
Answer: B

NEW QUESTION: 3
You have a Cisco Nexus 1000V Series Switch that fails to connect to its VEMs. Which reason could cause this issue?
A. The standby VSM is offline.
B. The VMware vCenter firewall allows ports 80 and 443 only
C. The packet and control interfaces use the same VLAN
D. The capability I3control command is set on the packet interface.
Answer: D

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