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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 price of an 'out-of-the-money' convertible security is affected by:
I. Changes in interest rates
II. Changes in the issuer's credit risk
III. Changes in the issuer's share price
IV. Changes in the implied volatility of the issuer's share price
A. III and IV
B. All of the above
C. I, III and IV
D. I and II
An out of the money convertible security behaves just like a regular debt security as the option is near worthless. Therefore it is affected by changes in interest rates and the credit risk of the issuer, and unaffected by changes in the prices or volatility of the issuer's shares (the underlying).
NEW QUESTION: 2
You customer uses a multi-currency compensation plan template. Where can they update the exchange rate for US Dollars (USD) to Euros (EUR) using the Admin Tools?
Please choose the correct answer.
A. Compensation Home -> Plan Setup -> Plan Details
B. Compensation Home -> Plan Setup -> Setting -> Currency settings
C. Compensation Home -> Actions for all Plans
D. Compensation Home -> Manage worksheets