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A trader comes in to work and finds the following prices in relation to a stock: $100 spot, $10 for a call expiring in one year with a strike price of $100, and $10 for a put with the same expiry and strike. Interest rates are at 5% per year, and the stock does not pay any dividends. What should the trader do?
A. Buy the put, sell the call and buy the stock
B. Buy the call, buy the put and sell the stock
C. Buy the call, sell the put and sell the stock
D. Do nothing
Answer: C
The prices must satisfy the put-call parity, and if they do not, it means there is an arbitrage opportunity, The put-call parity is as follows. We plug in the values to check if the parity is maintainted.
Buying a call + Bank Deposit (PV of exercise price) = Buying the stock + Buying a put Thus the LHS = $10 + $100/(1 + 5%) = $105.24 and RHS = $100 + $10 = $110, ie the equality does not hold.
Since the trader can make a profit by buying low and selling high, and the set of positions on the left should be brought, and those on the RHS should be sold. Thus the trader should buy the call, sell the put and sell the stock to make a risk free profit. (There is no need to explicitly place a bank deposit at the risk-free rate).

You are a professional level SQL Sever 2008 Database Administrator.
A large database is hosted by the instance. The company utilizes the following backup strategy for the database:
First, the performance of full database backups is implemented weekly.
Secondly, the performance of differential backups is implemented daily.
Thirdly, the performance of transaction log backups is implemented hourly.
According to the restoring plan, an unscheduled full backup should be performed. A full database backup should be performed, and the scheduled backup strategy should not be interrupted.
Form the following four options, which one should be utilized to finish the task?
A. To finish the task, SKIP should be utilized.
B. To finish the task, MIRROR TO should be utilized.
C. To finish the task, COPY_ONLY should be utilized.
D. To finish the task, NOINIT should be utilized.
Answer: C
COPY_ONLY is a backup option which will not affect the normal backup sequence.
NONIT specifies that the backup should be appended to an existing set.
SKIP works in conjunction with INIT/NONIT and skips the check for media name and expiration.
MIRROR to will make a secondary copy of the backup.
A copy-only backup is a SOL Server backup that is independent of the sequence of conventional SQL Server [email protected] Usually, taking a backup changes the database and affects how later backups are restored, However, occasionally, it is useful to take a backup for a special purpose without affecting the overall backup and restore procedures for the database. For this purpose, copy-only backups were introduced SQL Server 2005. The types of copy-only backups are as follows: Copy-only full backups {all recovery models)
A copy-only full backup cannot serve as a differential base or differential backup and does not affect the differential base.
Copy-only log backups {full recovery model and bulk-logged recovery model only)
A copy-only log backup preserves the existing log archive point and, therefore, does not affect the sequencing of regular log backups. Copy-only log backups are typically unnecessary. Instead, you can create another routine, current log backup (using WITH NORECOVERY), and then use that backup together with all other previous log backups that are required for the restore sequence. However, a copy-only log backup can be created for performing an online restore. The transaction log is never truncated after a copy-only backup. Copy-only backups are recorded in the is_copy_only column of the backupset table.


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