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NEW QUESTION: 1
A company has a policy that denies all applications it classifies as bad and permits only application it classifies as good. The firewall administrator created the following security policy on the company's firewall.

Which interface configuration will accept specific VLAN IDs?
Which two benefits are gained from having both rule 2 and rule 3 presents? (choose two)
A. Different security profiles can be applied to traffic matching rules 2 and 3.
B. Rule 2 and 3 apply to traffic on different ports.
C. A report can be created that identifies unclassified traffic on the network.
D. Separate Log Forwarding profiles can be applied to rules 2 and 3.
Answer: A,D

NEW QUESTION: 2
Kwagmyre Investments, Ltd., hold two bonds: a callable bond issued by Mudd Manufacturing Inc. and a putable bond issued by Precarious Builders. Both bonds have option adjusted spreads (OAS) of 135 basis points (bp). Kevin Grisly, a junior analyst at the firm, makes the following statements (each statement is independent). Apparently, Grisly could benefit from a CFA review course, because the only statement that could be CORRECT is:
A. The cost of the call option on the Mudd bond is -15bp.
B. The spread over the spot rates for a Treasury security similar to Mudd's bond is 145 bp.
C. The Z-spread for Mudd's bond is based on the YTM.
D. Given a nominal spread for Precarious Builders of 110 bp, the option cost is -25 bp.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The "spread over the spot rates for a Treasury security similar to Mudd's bond" refers to the Z-spread on the bond.For a callable bond, the OAS < Z-spread, so this could be a true statement because 135bp < 145 bp.
The other statements are false. The option cost is calculated using the OAS and theZ-spread,not the nominal spread. The cost of the call option should be positive.(The issuer has to compensate for increased uncertainty from the call option.) The static spread (or Z-spread)is the spread over each of the spot rates in a given Treasury term structure,not the spread over the Treasury's YTM.
Following is a more detailed discussion:
The option-adjusted spread(OAS) is used when a bond has embedded options. The OAS can be thought of as the difference between the static or Z-spread and the option cost. For the exam, remember the following relationship between the static spread (Z-spread), the OAS, and the embedded option cost:
Z Spread - OAS = Option Cost in % terms
Remember the following option value relationships:

NEW QUESTION: 3



A. Option D
B. Option A
C. Option B
D. Option C
Answer: D