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NEW QUESTION: 1
Barton Wilson, a junior analyst, is a new hire at a money center bank. He has been assigned to help Juanita Chevas, CFA, in the currency trading department. Together, Wilson and Chevas are working on the development of new trading software designed to detect profitable opportunities in the foreign exchange market. Obviously, they are interested in risk-free arbitrage opportunities. However, they have also been instructed to investigate the possibility of longer-term currency exposures that are not necessarily risk-free. To test the logic of their new software, Wilson gathers the following market data:
* Spot JPY/USD exchange rate = 120.
* Spot EUR/USD exchange rate = 0.7224.
* U.S. risk-free interest rate = 7%.
* Eurozone risk-free rate = 9.08%.
* Japanese risk-free rate = 3.88%.
* Yield curves in all three currencies are flat.
In addition to in-house currency transactions, the new software program is also intended to provide insight into currency exposure and hedging needs for the bank's major customers. These customers typically include large multinational firms. Essentially, the bank wants to provide consulting services to its clients concerning which currency exposures offer the greatest possibility of appreciation. In this process, the bank will rely on deviations from international parity conditions as an indicator of long-term currency movements.
Wilson obtains the following data from the econometrics department:
* JPY/USD spot rate one year ago =116.
* EUR/USD spot rate one year ago = 0.7200.
* Anticipated and historical U.S. annual inflation = 3%.
* Anticipated and historical Japanese annual inflation = 0%.
* Anticipated and historical Eurozone annual inflation = 5%.
One of the bank's major customers has significant portions of its business in Japan, and the Eurozone and has long exposure to both currencies. The customer has traditionally hedged all currency risk. However, the customer's new risk manager has decided to leave some currency exposure unhedged in an attempt to profit from long-term currency exposure.
Based on the assumption that international parity conditions will hold in the long run, should the JPY and Euro currency exposures of the bank's major customer be left unhedged?
A. Neither currency should be left unhedged.
B. Both currencies should be left unhedged.
C. One currency should be left unhedged and the other should not.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
This question requires you to look at deviations from international parity conditions and then determine whether those deviations will tend to work to the advantage of the customer. In this problem, you arc given the necessary information to examine parity conditions using relative purchasing power parity (RPPP). For the JPY, RPPP tells us that, since the spot rate one year ago was 116, the spot rate today should be (JPY is considered the foreign currency):

Since the expected spot rate today, based on RPPP (i.e., 112.62), is not equal to the actual spot rate today (i.e., 120), RPPP did not hold over the past year. Since the actual rate is higher than the rate forecast by RPPP, the long-term trend based on deviations from international parity conditions will be for the rate to fall and the JPY to appreciate. Hence, using deviations from parity conditions as indicators of future currency movements, the bank should recommend that the JPY exposure be left unhedged.
Using the same RPPP process for the EUR exposure, we can calculate an RPPP spot rate today of 0.7340 (given that the rate was 0.72 one year ago).

Again, RPPP did not hold (i.e., the actual rate today, 0.7224, is not equal to the RPPP rate that should exist today given the inflation rates). However, for the EUR case, the RPPP expected spot is higher than the actual spot, indicating that the EUR may be currently overvalued and, thus, more likely to depreciate in the future. EUR exposure should be hedged. (Study Session 4, LOS 19.g,h)

NEW QUESTION: 2
バックアップのテストに使用するRecovery Serviceボルトがあります。テストバックアップには、2つの保護された仮想マシンが含まれています。
Recovery Servicesコンテナーを削除する必要があります。
最初に何をすべきですか?
A. Recovery Serviceコンテナーから、各バックアップ項目のバックアップを停止します。
B. 各仮想マシンのロックを変更します。
C. 各仮想マシンの惨事復旧プロパティを変更します。
D. Recovery Serviceコンテナーから、バックアップデータを削除します。
Answer: A
Explanation:
You can't delete a Recovery Services vault if it is registered to a server and holds backup data. If you try to delete a vault, but can't, the vault is still configured to receive backup data.
Remove vault dependencies and delete vault
In the vault dashboard menu, scroll down to the Protected Items section, and click Backup Items. In this menu, you can stop and delete Azure File Servers, SQL Servers in Azure VM, and Azure virtual machines.

References:
https://docs.microsoft.com/en-us/azure/backup/backup-azure-delete-vault

NEW QUESTION: 3
A security assessor is attempting to craft specialized XML files to test the security of the parsing functions during ingest into a Windows application.
Before beginning to test the application, which of the following should the assessor request from the organization?
A. Sample SOAP messages
B. An applicable XSD file
C. A protocol fuzzing utility
D. The REST API documentation
Answer: B

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