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NEW QUESTION: 1
[According to the PRMIA study guide for Exam 1, Simple Exotics and Convertible Bonds have been excluded from the syllabus. You may choose to ignore this question. It appears here solely because the Handbook continues to have these chapters.] The profit potential from the conversion of convertible bonds into stock is limited by
A. conversion premium charged by the issuer
B. volatility of the stock
C. a rise in interest rates
D. the issuer's option to call the security at short notice
Answer: D
Explanation:
Explanation
The profit potential from the conversion of convertible bonds into stock is limited by the issuer's option to call the security at short notice. Generally, the convertible debt security is convertible into a certain number of shares, and the debt holder will generally not convert the security to shares unless there is a profit to be made.
The 'premium' is irrelevant, because as long as the premium exists, the debt holder has no incentive to convert, as he would be better off buying the shares in the market. It is only when share prices go beyond a level that it becomes advantageous convert the security into shares. However, the prospect of granting cheap shares to the debt holders is not too appealing to the issuer, and as soon as the share price goes beyond a point where the value of the shares exceeds the face value of the debt the issuer has an incentive to exercise its option to call the security.
Therefore the profit potential from the conversion of convertible bonds into shares is limited by the issuer's option to call the security, and Choice 'a' is the correct answer. The 'premium', or interest rates, or volatility are irrelevant.

NEW QUESTION: 2
Which procedure can be used to validate and correct most geometry errors in an Oracle Spatial geometry?
A. SDO_CS.VALIDATE_WKT
B. SDO_MIGRATE.TO_CURRENT
C. SDO_TUNE.QUALITY_DEGRADATION
D. SDO_UTIL.RECTIFY_GEOMETRY
E. SDO_GEOM.ALPHA_SHAPE
F. SDO_CS.TRANSFORM
Answer: D
Explanation:
SDO_UTIL.RECTIFY_GEOMETRYfixes certain problems with the input geometry, and returns a valid geometry.
This function checks for the following problems that can make a geometry invalid, and fixes the problems in the returned geometry:
Duplicate vertices
Polygon boundary intersecting itself
Incorrect orientation of exterior or interior rings (or both) of a polygon
If the input geometry has any other problem that makes it invalid, the function raises an exception.
If the input geometry is valid, the function returns a geometry that is identical to the input geometry.

NEW QUESTION: 3
Which of the following is NOT an entry point or trigger of the Synapse mediation engine?
A. Outbound endpoints
B. Inbound endpoints
C. APIs
D. Proxy services
Answer: A

NEW QUESTION: 4
Refer to the exhibit.

Which MPLS TE component keeps track of the flooding and admission control?
A. RSVP
B. MPLS TE priorities
C. link attributes
D. link manager
Answer: A