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Refer to the exhibit.
A service provider is running MPLS TE across its network. IS-IS is deployed as the IGP for
the ISP network. The MPLS TE tunnel 0 configured on PE2 is seen in an operational down state. PE2 is a level-1 router and the destination
192.168.1.1 is located in the IS-IS level-2 area. Which action is required to bring the MPLS TE tunnel 0 to up state?
A. Add a dynamic path option to the tunnel.
B. Change the autoroute option from destination to announce.
C. Configure an IPv4 address for the Tunnel 0.
D. Configure the next-address entries as loose paths in the explicitpath.
E. Configure a bandwidth value for the tunnel.
Answer: D
A. Option B
B. Option D
C. Option A
D. Option C
Answer: C
A stock is selling at $90. An investor writes a covered call on the stock with an exercise price of $100 in return for a premium of $3 per share. What would be the maximum gain or loss per share that the investor could make on this position?
A. Maximum gain of $10; maximum loss of $87
B. Maximum gain of $13; maximum loss of $87
C. Maximum gain of $10; maximum loss of $90
D. Maximum gain of $3, and no losses are possible as this is a covered call
Answer: B
Explanation:
Explanation
Once the price of the stock exceeds $100, the investor would forego any additional gains as the call would be exercised. Therefore the maximum gain to the investor is $10, plus the premium earned, which is $3, making for a maximum gain of $13.
In the event the stock price declines, the investor would lose on his long stock position an amount equal to the decline, less any premium earned. The worst case price for a stock is 0, and in this case the investor would lose his $90 in the stock, offset by $3 in premiums earned (the written call would expire worthless), thereby limiting his total loss to $87.
Choice 'c' is therefore the correct answer.
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