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NEW QUESTION: 1
Which of the following prerequisites need to be fulfilled for purchase order approval?
A. You need administrator authorizations.
B. You need to assign the release conditions.
C. The Purchase Order value has to be higher than a predefined net value.
D. The associated Purchase Requisition has to be approved manually
Answer: B,C

NEW QUESTION: 2
According to a 1989 Department of Labor study, the percentage of employees in America working for a company that has a drug-testing program for employees or plans to have a drug-testing program is:
A. 50 percent
B. 80 percent
C. 1 percent
D. 10 percent
Answer: D

NEW QUESTION: 3
Which of the following is not a relevant consideration for a trader desirous of delta hedging his or her options portfolio?
A. Volatility of the underlying
B. Rebalancing frequency
C. Cost per trade
D. Bid-offer spreads on the underlying
Answer: C
Explanation:
Explanation
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.

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