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NEW QUESTION: 1
Which two prerequisites are required to configure a SAN boot from the iSCSI storage of a Cisco UCS system? (Choose two.)
A. There must be FCIP connectivity between the Cisco UCS domain and the boot target storage.
B. There must be a group of IP addresses that is associated with the WWN pool.
C. The operating system to boot must be iBFT-capable.
D. The operating system to boot must be an iSCSI initiator and must he target-capable.
E. There must be IP connectivity between the Cisco UCS domain and the boot target storage.
To use a SAN boot, ensure that the following is configured: The Cisco UCS domain must be able to communicate with the SAN storage device that hosts the operating system image.
The next step, which is the installation of the operating system (OS), requires an OS that is iBFT capable.
There must be FCIP connectivity between the Cisco UCS domain and the boot target storage. NOT CORRECT (FCIP IS FC).
There must be IP connectivity between the Cisco UCS domain and the boot target storage. CORRECT The operating system to boot must be iBFT-capable. CORRECT.
There must be a group of IP addresses that is associated with the WWN pool. NOT CORRECT (WWN IS FC).
The operating system to boot must be an iSCSI initiator and must be target-capable. MAYBE.
NEW QUESTION: 2
The rate of dividend on a stock goes up. What is the effect on the price of a put option on this stock?
A. It increases the value of the put
B. It decreases the value of the put
C. It does not affect the value of the put
D. It may affect the put value either way depending upon the risk-free rate
Everything else remaining the same, an increase in the rate of dividends causes the value of call options to fall and the value of put options to rise. Therefore, Choice 'b' is the correct answer. (In the exam, the question could address either a call or a put option, so be aware of the answer in either case).
To understand this, consider how dividends are accounted for when valuing an option using the Black Scholes model. Future dividends are discounted to the present using the risk free rate and this discounted value is reduced from the spot price used in the BSM valuation. Effectively, this reduces the spot price used in the BSM formula. When the spot price reduces, and the exercise price remains the same, then the value of the call option goes down. In the same way, when spot price is reduced by the present value of dividends (and the exercise price stays the same), obviously the put option becomes more valuable. Therefore an increase in the rate of dividends increases the value of the put option.
There is another intuitive way to think about this: A call option is like a long position in the stock, but the holder of the call option is not entitled to receive dividends (unlike the holder of the stock). Since the holder of the call option has to forego the dividends, he is willing to pay less for the option; or in other words, the value of the call reduces.
In the same way, a put option is like having a short position in the stock. The holder of the short position has to borrow the stock in order to get into the short position in the first place. When dividends are paid, the holder of the short stock position has to make good any dividends that might be paid to the lender of the stock. The holder of a put option does not have to make any such payments. Therefore the put option is more valuable, and the existence of dividends (or an increase in dividends) increases the value of the put option.
(Try this out using the Black Scholes Excel model given under the tutorials by varying the spot price.)