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NEW QUESTION: 1
What can the buyer of a 6 x 12 FRA expect to receive (or pay) if the contracted rate is 10% and the settlement rate is 12%? Assume contract notional is $100m.
A. Receive $943,396
B. Pay $943,396
C. Receive $1,000,000
D. Pay $1,000,000
Answer: A
Explanation:
Explanation
The buyer of the FRA gets to borrow $100m at 10% per annum for 6 months at the end of 6 months from the contract date. Thus, the interest due is $100m * 10% * 6/12 = $5m. However, at the end of the 6 months (when the notional borrowing period begins), the spot rate is 12%. The interest due on a borrowing at the spot rate would be $100m * 12% * 6/12 = $6m. Since the buyer gets to borrow cheaper than the going rate, he or she has made a gain of $1m on the FRA. However, this amount is not due immediately, it is due at the end of the 6 month borrowing period (ie, 12 months from the date the contract was entered into). The seller of the FRA can make the buyer whole by paying the buyer the present value of $1m due in 6 months time, which is $1m/(1 +
12%*6/12) = $1m/1.06 = $943,396.
Thus, Choice 'd' is the correct answer. Remember that the FRA gets settled at the beginning of the notional borrowing period as all future cash flows, and the applicable discount rates are known with certainty. The buyer and the seller do not need to wait for the entire period to get over first. The cash settlement allows the buyer to borrow at the market rate and still have the same net borrowing cost as he or she had initially contracted for in the FRA.

NEW QUESTION: 2
View the Exhibit button and examine the structures of ORDERS and ORDER_ITEMS tables.
In the ORDERS table, ORDER_ID is the PRIMARY KEY and in the ORDER_ITEMS table, ORDER_ID and LINE_ITEM_ID form the composite primary key.
Which view can have all the DML operations performed on it?

A. CREATE VIEW V1
AS SELECT order_id, product_id
FROM order_items;
B. CREATE VIEW V2
AS SELECT order_id, line_item_id, unit_price*quantity total
FROM order items;
C. CREATE VIEW V3
AS SELECT o.order_id, o.customer_id, i.product_id
FROM orders o, order_items i
WHERE o.order_id=i. order_id;
D. CREATE VIEW V4(or_no, or_date, cust_id)
AS SELECT order_id, order_date, customer_id
FROM orders
WHERE order_date < 30-mar-2007'
WITH CHECK OPTION;
Answer: D

NEW QUESTION: 3
Evaluate these statements:
CREATE TABLE purchase_orders
(po_idNUMBER(4),
po_dateTIMESTAMP,
supplier_idNUM8ER(6),
po_totalNUMBER(8,2), CONSTRAINT order_pk PRIMARY KEY(po_id))
PARTITIONBYRANGE(po_date)
(PARTITIONQ1 VALUESLESSTHAN (TO_DATE('01-apr-2007','dd-mon-yyyy')),
PARTITIONQ2VALUESLESSTHAN(TO_DATE('01-jul-2007','dd-mon-yyyy')),
PARTITIONQ3VALUESLESSTHAN (TO~DATE('01-oct-2007','dd-non-yyyy')),
PARTITIONQ4VALUESLESSTHAN (TO_DATE('Ol-jan-2008','dd-non-yyyy' )));
CREATETABLEpurchase_order_items
(po_idNUM3ER(4)NOTNULL,
product_idNUMBER(6)NOTNULL,
unit_prlceNUMBER(8,2),
quantity NUMBER(8),
CONSTRAINTpo_items_f k
FOREIGNKEY(po_id)REFERENCESpurchase_orders(po_id) )
PARTITIONBYREFERENCE(po_items_fk);
Which two statements are true?
A. purchase_order_items table partitions exist in the same tablespaces as the purchase_orders table partitions.
B. The purckase_order_:teks table inherits the partitioning key by duplicating the key columns from the parent table.
C. Partitions of purchase_order_items are assigned unique names based on a sequence.
D. The purchase_orders and purchase_order_items tables are created with four partitioneach.
E. Partition maintenance operations on the purchase_order_items table require disabling the foreign key constraint.
Answer: A,D
Explanation:
Explanation
The following example creates a parent table orders which is range-partitioned on order_date. The reference-partitioned child table order_items is created with four partitions, Q1_2005, Q2_2005, Q3_2005, and Q4_2005, where each partition contains the order_items rows corresponding to orders in the respective parent partition. Partitions of a reference-partitioned table will collocate with the corresponding partition of the parent table, if no explicit tablespace is specified for the reference-partitioned table's partition. The partitions of a reference-partitioned table can be named. If a partition is not explicitly named, then it will inherit its name from the corresponding partition in the parent table.
http://docs.oracle.com/cd/B28359_01/server.111/b32024/part_admin.htm#BAJDDEEC