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NEW QUESTION: 1
Review the screenshot of a system configuration, then answer the question below.
Your Mac is configured as shown in the screenshot. Using Safari, you download an app from an unidentified developer and double-click the app icon. What happens?
A. The app doesn't open, and an alert message tells you that the app is from an unidentified developer.
B. The app opens without an alert message.
C. An alert message asks whether you want to open this app from an unidentified developer.
D. The app opens after an alert message that the app is from an unidentified developer.
Answer: A
NEW QUESTION: 2
Which command protocol is used for lower-performance disk drives?
A. SCSI
B. FireWire
C. ATA
D. iSCSI
Answer: C
NEW QUESTION: 3
Simone Girau holds a callable bond and Chi Rigazio holds a putable bond. Which of the following statements about the two investors is TRUE?
A. Girau's bond has less potential for price appreciation.
B. If yield volatility increases, the value of Rigazio's option will decrease.
C. Both investors calculate the value of the bond held by adding the value of the option to the value of a similar straight bond.
D. As the yield volatility increases, the value of both Girau's bond and the underlying option increases.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
When a bond has a call provision, the potential for price appreciation is reduced, because the call caps the price of the bond near the call price. Even if interest rates fall considerably, it is unlikely that investors would pay a price that exceeds the call price.
The other statements are false. To calculate the value of a putable bond, it is correct to add the option value to the value of a similar straight bond. However, to calculate the callable bond value, subtract the option value from that of a similar straight bond. As a result, when yield volatility increases (thus increasing the option value), the value of a callable bond decreases and the value of a putable bond increases. A call option does benefit the issuer, but a put option benefits the holder. Embedded options (puts and calls) increase in value when volatility increases.
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