According to Basel II's definition of operational loss event types, losses due to acts by third parties intended to
defraud, misappropriate property or circumvent the law are classified as
The Options Theoretic approach to calculating economic capital considers the value of capital as being
equivalent to a call option with a strike price equal to:
A financial institution is considering shedding a business unit to reduce its economic capital requirements.
Which of the following is an appropriate measure of theresulting reduction in capital requirements?