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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. Volatility of the underlying
C. Cost per trade
D. Bid-offer spreads on the underlying
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
Click the Exhibit button.
Referring to the exhibit, which two statements about the connectivity from the 2-node cluster to the cluster interconnects are true? (Choose two.)
A. The CN1610 switches were discovered by using Cisco CDP.
B. The nodes are cabled incorrectly.
C. The CN1610 switches were discovered by using LLDP.
D. The nodes are cabled correctly.
From the exhibit we see that cdp is used.
Cabling the private cluster interconnect for NetApp CN1610 switches.
1. Using a supplied 10 GbE copper cable, connect port e1a of the first storage controller to port 1 of the top cluster switch.
2. Connect port e2a of the first storage controller to port 1 of the bottom cluster switch.
3. Repeat for the other storage controllers in the cluster.
4. Connect the second controller to port 2 of each switch, the third controller to port 3, and so on.