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NEW QUESTION: 1
A futures contract is quoted at 105. Which is the cheapest-to-deliver bond for this contract if there are three available bonds, quoted at 97, 101 and 106 with conversion factors respectively of 0.9, 1 and 1.1 respectively?
A. The bond quoted at 106
B. All the bonds are equally cheap to deliver
C. The bond quoted at 97
D. The bond quoted at 101
Answer: A
Explanation:
Explanation
Treasury bond futures do not specify which bond can be used to effect delivery, but allow the seller to pick from a number of available bonds. As a result, one of these eligible bonds emerges as being the 'cheapest' to deliver, and this CTD bond is determined by the basis between the cash price of the bond and the futures spot price as adjusted by the conversion factor for this specific bond. (ie, basis = Cash Price of the Bond - (Futures Price x Conversion Factor).) The bond with the lowest basis is generally the CTD. In the given question, the three basis calculations are:
1) 97 - (0.9 x 105) = 2.5
2) 101 - (1 x 105) = -4
3) 106 - (1.1 x 105) = -9.5
Since the third bond with a quote of 106 has the lowest basis, Choice 'b' is the correct answer.

NEW QUESTION: 2
A VMware vSphere 6.x Administrator is creating an Alarm Action.
What are three configurable actions? (Choose three.)
A. Shutdown Guest
B. Send a notification email
C. Restart Guest
D. Migrate VM
E. Run a command
Answer: B,D,E
Explanation:
References:

NEW QUESTION: 3
Given the data below is normally distributed, and the population standard deviation is 3.1, what is the 90% confidence interval for the mean?
22, 23, 19, 17, 29, 25
A. 17.4 - 27.6
B. 20.88 - 24.12
C. 20.42 - 24.59
D. 21.65 - 23.35
Answer: C

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