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NEW QUESTION: 1
Which of the following is not a relevant consideration for a trader desirous of delta hedging his or her options portfolio?
A. Rebalancing frequency
B. Cost per trade
C. Bid-offer spreads on the underlying
D. Volatility of the underlying
Answer: B
Explanation:
Explanation
The greater the rebalancing frequency, the more effective the hedge. But the higher the rebalancing frequency (ie the how often the hedge is true-ed up as a response to changes in the market), higher are the transaction costs. Higher transaction costs reduce hedge performance. Therefore transaction costs limit the ability of traders to continuously trade and keep delta at or close to zero. Transaction costs include a number of elements, including market impact costs, dollar costs per trade, and the bid-offer spread on the security.
Traders have to strike a balance between transaction costs and the rebalancing frequency when making decisions on hedging. Bid-offer spreads, cost per trade and the rebalancing frequency are therefore relevant considerations. The volatility of the underlying is not something the trader would consider when taking decisions to delta hedge (unless as part of an active bet on future volatility) and therefore Choice 'c' is irrelevant to the trader's decision, and is the correct answer.

NEW QUESTION: 2
Hotspot Question
For each of the given items, select the appropriate authentication category from the drop down choices.
Select the appropriate authentication type for the following items:

Answer:
Explanation:

NEW QUESTION: 3

A. My SQL
B. MS SQL
C. PostgreSQL
D. Oracle
Answer: B
Explanation:
Amazon RDS provides high availability and failover support for DB instances using Multi AZ deployments. In a Multi AZ deployment, Amazon RDS automatically provisions and maintains a synchronous standby replica in a different Availability Zone. Multi AZ deployments for Oracle, PostgreSQL, and MySQL DB instances use Amazon technology, while SQL Server (MS SQL. DB instances use SQL Server Mirroring.