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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.] The use of numerical pricing methods over analytical methods for valuing exotic options is resorted to allow for which of the following reasons:
I. Efficient valuation
II. Allowing for stochastic volatility
III. Accommodating discontinuous asset prices
IV. Allowing for complex payoffs
A. II, III and IV
B. I, II and III
C. I, II, III and IV
Analytical methods are more 'efficient' than numerical methods in terms of computing power required, consistency of results and providing clarity on the inputs driving the results. Therefore 'efficient valuation' is not a reason to adopt numerical pricing methods over analytical methods.
It is much easier to incorporate changing stochastic volatility, discontinuous asset prices or other complex payoffs using numerical pricing methods. So these certainly represent good reasons to use numerical pricing methods for valuing exotics.
Therefore Choice 'b' is the correct answer.
NEW QUESTION: 2
An admin attempts to enforce stronger security by using these commands:
The admin then leaves the system running with the specified changes. What are two remaining security concerns? (Choose two.)
A. The dictionary file is in an insecure location.
B. The dictionary file word list is too short.
C. validate_password_policy cannot be set without restarting the MySQL instance.
D. The validate_password plug-in has not been loaded.
E. validate_password_dictionary_file cannot be set without restarting the MySQL instance.
F. The name of the dictionary file is too obvious.