Assume the Dollar Market Value of an FI's Position Is

question 46

Multiple Choice

Assume the dollar market value of an FI's position is $200 000 and the calculated price volatility is 1.25 per cent. What is the VAR of the position if the FI is required to hold the position for 6 days (round to two decimals) ?

• A) $2 683.28
• B) $6 123.72
• C) $200 000.00
• D) $489 897.95

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Definitions:

Elaboration Likelihood Model

A theory explaining how people are persuaded, considering the likelihood of them engaging in careful thought or processing of persuasive information.

Learning Groups

Small clusters of individuals who come together with the purpose of achieving specific educational or learning objectives.

Type of Interaction

Refers to the various ways that individuals can engage with one another, such as through direct conversation, written communication, or non-verbal cues.

Common Goal

A shared objective or outcome that a group or team aims to achieve, fostering collaboration and unity among its members.