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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.
Are the Japanese and Eurozone inflation forecasts provided by the econometrics department consistent with the inflation rates implied by the exact version of the international Fisher relation, given a U.S. inflation rate of 3%?
A. Both forecasts are consistent.
B. One forecast is consistent and the other is not.
C. Neither forecast is consistent.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Using the international Fisher relation, we can solve for the inflation forecasts in Japan and Europe, given interest rate differentials and the U.S. inflation forecast:

Both implied inflation rates are consistent with the forecasts from the econometrics department. (Study Session 4, LOS 19.i,j,k)

NEW QUESTION: 2
-- Exhibit -

-- Exhibit --
Click the Exhibit button.
A customer is trying to configure a router to peer using EBGP to a neighbor. As shown in the exhibit, two links are being used for this configuration. The goal of this configuration is to load-balance traffic across both EBGP links.
Which configuration accomplishes this goal?
A. {master:0}[edit]
user@router# show protocols bgp
group External {
multihop;
local-address 192.168.2.1;
peer-as 65532;
neighbor 192.168.5.1;
}
{master:0}[edit]
user@router# show routing-options
static {
route 192.168.5.1/32 next-hop [ 10.10.2.2 10.20.2.2 ];
}
autonomous-system 65432;
forwarding-table {
export load-balance;
}
{master:0}[edit]
user@router# show policy-options policy-statement load-balance
term balance {
then {
load-balance per-packet;
accept;
}
}
B. {master:0}[edit]
user@router# show protocols bgp
group External {
multipath;
local-address 192.168.2.1;
peer-as 65532;
neighbor 10.10.2.2;
neighbor 10.20.2.2;
}
{master:0}[edit]
user@router# show routing-options
static {
route 192.168.5.1/32 next-hop 192.168.2.1;
}
autonomous-system 65432;
C. {master:0}[edit]
user@router# show protocols bgp
group External {
multi-path;
local-address 192.168.2.1;
peer-as 65532;
neighbor 192.168.5.1;
}
{master:0}[edit]
user@router# show routing-options
static {
route 192.168.5.1/32 next-hop [ 10.10.2.2 10.20.2.2 ];
}
autonomous-system 65432;
D. {master:0}[edit]
user@router# show protocols bgp
group External {
multihop;
local-address 192.168.2.1;
peer-as 65532;
neighbor 10.10.2.2;
neighbor 10.20.2.2;
}
{master:0}[edit]
user@router# show routing-options
static {
route 192.168.5.1/32 next-hop 192.168.2.1;
}
autonomous-system 65432;
Answer: A

NEW QUESTION: 3

A. MPLS
B. MPIO
C. MTU
D. MTBF
Answer: B

NEW QUESTION: 4
Scenario: A Citrix Administrator needs to set up a new provisioning environment. The administrator builds and configures two Provisioning Servers to support 200 target devices. All of the target devices are configured to start up using vDisks that are caching in device HD. Network Engineering mandates that the administrator configure the TFTP service and DHCP scope to assign IP addresses to all the target devices.
When the administrator tries to start any target devices, the machines hang and show the error in the attached exhibit.

Click the Exhibit button to view the error message.
Which action could the administrator take to resolve this issue?
A. Set the firewall to allow UDP 67 and 68.
B. Enable DHCP options 66 and 67.
C. Assign a vDisk to the target devices.
D. Configure the correct VLAN ID for the target devices.
Answer: D

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