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NEW QUESTION: 1
Drag and drop the descriptions of performing an initial device configuration from the left onto the correct features or compnents on the right.

Answer:
Explanation:

NEW QUESTION: 2

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

NEW QUESTION: 3
Which of the following are valid approaches to calculating potential future exposure (PFE) for counterparty risk:
I. Add a percentage of the notional to the mark-to-market value
II. Monte Carlo simulation
III. Maximum Likelihood Estimation
IV. Parametric Estimation
A. I and II
B. III and IV
C. All of the able
D. I, III and IV
Answer: A
Explanation:
Explanation
When a derivative position is entered into, its mark-to-market value is generally close to zero (though the notional may be high). With the passage of time, the derivative's value fluctuates in an unpredictable way, creating a counterparty exposure that may be difficult to estimate and risk manage. Counterparty risk in such cases is estimated based on Potential Future Exposure, which may be calculated using either:
a) Take the mark-to-market at present, and add a certain percentage of the notional, or b) Perform a Monte Carlo simulation, capturing the stochastic nature of the PFE.
Therefore I and II are valid choices. MLE and parametric estimation are not methods for calculating PFE.