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2025 Valid OGBA-101 Exam Tutorial & Vce OGBA-101 Torrent - TOGAF Business Architecture Foundation Exam Reliable Exam Registration - Sugakumaster

OGBA-101

Exam Code: OGBA-101

Exam Name: TOGAF Business Architecture Foundation ExamCertification

Version: V16.75

Q & A: 400 Questions and Answers

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NEW QUESTION: 1
Which of the following statements are true:
I. Caps allow the buyer of the cap protection against rise in interest expense II. Floors offer investors protection from downward movement in interest rates III. Collars can be used as hedges IV. Both caps and collars can be used to hedge against widening credit spreads
A. I and II
B. I, II, III and IV
C. I, II and III
D. II and III
Answer: C
Explanation:
Explanation
Interest rate caps are effectively call options on an underlying interest rate that protect the buyer of the cap against a rise in interest rates over the agreed exercise rate. As with options, the premium on the cap depends upon the volatility of the underlying rates as one of its variables. A floor is the exact opposite of a cap, ie it is effectively a put option on an underlying interest rate that protects the buyer of the floor against a fall in interest rates below the agreed exercise rate. Therefore statements I and II are correct.
A cap protects a borrower against a rise in interest rates beyond a point, and a floor protects a lender against a fall in interest rates below a point.
A collar is a combination of a long cap and a short floor, the idea being that the premium due on the cap is offset partly by the premium earned on the short floor position. Therefore a collar is less expensive than a cap or a floor.
Caps, floors and collars provide a hedge against interest rate risks. Therefore statement III is correct too.
However. they do not always provide protection against spreads changing, as the rate other than the one referenced by the cap or the floor may change causing the spread to change. Therefore statement IV is incorrect.

NEW QUESTION: 2
According to multiple of earnings method, the rule of thumb used by many insurance agents is that your insurance coverage should be equal to 5 to 10 times your current income. For example, if you currently earn $70,000 a year, using the multiple of earning method then you need between:
A. $390,000 and $800,000 life insurance
B. $350,000 and $700,000 life insurance
C. $300,000 and $700,000 life insurance
D. $400,000 and $700,000 life insurance
Answer: B

NEW QUESTION: 3
Your customer's IT department wants a storage system that is easy to manage, has self-repairing dynamic disk pools, and can handle high bandwidth workloads.
Which Lenovo Storage offering should you suggest?
A. DB400D
B. D1224
C. DE Series
D. DB800D
Answer: C
Explanation:
Reference:
https://lenovopress.com/lp0882-lenovo-thinksystem-de4000h-hybrid-storage-array

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