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NEW QUESTION: 1
Pick underlying risk factors for a position in an equity index option:
I. Spot value for the index
II. Risk free interest rate
III. Volatility of the underlying
IV. Strike price for the option
A. I and IV
B. All of the above
C. II and II
D. I, II and III
Answer: D
Explanation:
Explanation
The index option is affected by the spot value for the underlying index, as also the risk free interest rate, or the zero rate for the duration of the option. It is also affected by the volatility of the underlying. The 'strike price' is set and is fixed at the time the option is purchased, and therefore is not a risk factor.
Therefore other than IV, all other choices are valid risk factors that underlie an equity index option.
Other instruments may have other risk factors - for example, a long forex position will have the spot exchange rate as the only risk factor.
NEW QUESTION: 2

A. Option B
B. Option D
C. Option C
D. Option A
Answer: A
NEW QUESTION: 3


Answer:
Explanation:

Explanation

NEW QUESTION: 4
Service Consumer A sends a request message with a Username token to Service A (1).
Service B authenticates the request by verifying the security credentials from the Username token with a shared identity store (2). To process Service Consumer A's request message, Service A must use Services B, C, and D.
Each of these three services also requires the Username token (3. 6, 9) in order to authenticate Service Consumer A by using the same shared identity store (4, 7, 10). Upon each successful authentication, each of the three services (B, C, and D) issues a response message back to Service A (5, 8, 11).
Upon receiving and processing the data in all three response messages, Service A sends its own response message to Service Consumer A (12).

You are asked to redesign this service composition architecture so that it can still carry out the described message exchanges while requiring that Service Consumer A only be authenticated once using the identity store.
Which of the following statements describes an accurate solution?
A. A single sign-on mechanism is implemented. The Brokered Authentication pattern is applied, resulting in Service A becoming the authentication broker. The authentication broker authenticates the security credentials received from Service Consumer A against the identity store. After successful authentication, the authentication broker issues a signed SAML token for Service Consumer A.
The SAML token is subsequently provided to Services B.C. and D by Service A, on behalf of Service Consumer A.
B. A single sign-on mechanism is implemented. The Brokered Authentication pattern is applied together with the Data Origin Authentication pattern. A separate authentication broker utility service is added in between Service Consumer A and Service A.
This requires that Service A send its Username token only once to Service B.
Service B then acts as a secondary authentication broker and authenticates Service Consumer A and Service A using the identity store. If the authentication is successful, Service B generates a shared secret key to be used as a session key during communication with Services C and D.
Because the session key is only known by these services, it can be used authenticates the services to each other.
C. A single sign-on mechanism is implemented. The Brokered Authentication pattern is applied together with the Data Origin Authentication pattern. Service A is redesigned to use holder-of-key based subject confirmation SAML assertions. This way, Service A only needs to send its Username token once to Service B.
Service B then acts as the authentication broker by issuing a SAML token to Service A and then further sends the SAML token to Services C and D on behalf of Service Consumer A and Service A.
Service B signs the SAML assertion in order to ensure its authenticity and integrity during message exchanges with Services C and D.
D. The Direct Authentication pattern is applied together with an authentication process that uses digital certificates and digital signatures instead of Username tokens. The digital certificate of Service Consumer A is attached to all subsequent request messages issued by Services A, B, C and D and these request messages are further signed by a private key.
Answer: A