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NEW QUESTION: 1
If the 3 month interest rate is 5%, and the 6 month interest rate is 6%, what would be the contract rate applicable to a 3 x 6 FRA?
A. 6.9%
B. 5%
C. 5.5%
D. 6%
Answer: A
Explanation:
Explanation
The correct answer is Choice 'b', as this question is merely asking for the forward rate based on known spot rates. The forward rate applicable to the three month period commencing in 3 months time is given by [(1 +
6%*6/12)/(1 + 5%*3/12) - 1]*4 = 6.91%. Thus Choice 'b' is the correct answer.
Here is a step by step way to think about it: $1 invested now at 6% for 6 months grows to (1 + 6%*6/12)=1.03.
At the same time, using the 3 month rate, $1 invested now at 5% for 3 months grows to (1 +
5%*3/12)=1.0125. Effectively, this means that the 1.0125 at the end of 3 months grow to 1.03 at the end of 6 months, implying the rate of interest during the 3 months from 3 to 6 months is (1.03/1.0125 - 1)*4 = 6.91%.
NEW QUESTION: 2
Charity tends to be ________ and _________ response.
A. Short Term, Emotional
B. Long Term, Strategic
C. Short term, Strategic
D. Long Term, Emotional
Answer: A
NEW QUESTION: 3
Your company wants to understand where cost is coming from in the company's production AWS account.
There are a number of applications and services running at any given time. Without expending too much initial
development time.how best can you give the business a good understanding of which applications cost the
most per month to operate?
A. Create an automation script which periodically creates AWS Support tickets requesting detailed
intra-month information about your bill.
B. Use the AWS Price API and constantly running resource inventory scripts to calculate total price based
on multiplication of consumed resources over time.
C. Use custom CloudWatch Metrics in your system, and put a metric data point whenever cost is incurred.
D. Use AWS Cost Allocation Taggingfor all resources which support it. Use the Cost Explorer to analyze
costs throughout the month.
Answer: D
Explanation:
Explanation
A tag is a label that you or AWS assigns to an AWS resource. Each tag consists of a Areyand a value. A key
can have more than one value. You can use tags to organize your resources, and cost allocation tags to track
your AWS costs on a detailed level. After you activate cost allocation tags, AWS uses the cost allocation tags
to organize your resource costs on your cost allocation report, to make it easier for you to categorize and track
your AWS costs. AWS provides two types of cost allocation tags, an A WS-generated tagand user-defined
tags. AWS defines, creates, and applies the AWS-generated tag for you, and you define, create, and apply
user-defined tags. You must activate both types of tags separately before they can appear in Cost Explorer or
on a cost allocation report.
For more information on Cost Allocation tags, please visit the below URL:
* http://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/cost-alloctags.html