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Like the long call butter y, the long put butter y is designed to work toward expiration, and signi cant gains are not likely until the time value of the short put options is reduced In the model shown in Figure 83, we can see the same pro t window with the underlying price decreasing on the horizontal axis The maximum risk to the spread is established on both ends with the time value decay and market price reduction maximizing at the 90 strike price at expiration The advantage to the butter y spread is the limited risk of trade The maximum risk is established with the purchased premium plus costs of trading, and it is not a trade that needs adjusting unless the trader has suf cient reason to believe that the market has found a direction The spread can be applied with the anticipation of the market moving within a certain range between the present and expiration If market fundamentals change or a technical trend develops that will take the market outside the range of the butter y during the term of the trade, one or more options can be liquidated in order

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example how theinverse of Therefbre, equation beensolvedfbr {r} This is another the has playsa role in matrix algebra thatis similarto divisionlt shouldbe notedthatthis is not a Thus, other approaches employedin are very efficient way to solve a systemof equations However,as discussed Section1112, matrix inverseitself in the numericalalgorithms hasgreatvaluein the engineering analyses suchsystems of (columns), (rows)thanunknowns with moreequations It shouldbe notedthatsystems regression where A m > n, are said to be overdetermined typical exampleis least-squares with less with n coefficients fitto m datapoints(x,y)Conversely, is systems an equation < A equationsthan unknowns,, n, are said to be nndertletermined typical example of is oDtimization underdetermined svstems numerical

MATLAB provides The two directwaysto solvesystems linearalgebraic of equations mosl efficientway is to employthe backslash, "left-division," or operator in as

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dbvowner@aos> -- we will assign the CORPORATE_SSL identity dbvowner@aos> -- an OLS label of HIGH dbvowner@aos> BEGIN dbms_macadmCREATE_POLICY_LABEL( identity_factor_name => 'Connection_Type' , identity_factor_value => 'CORPORATE_SSL' , policy_name => 'CUSTOMER_POLICY' , label => 'HIGH' ); END; / PL/SQL procedure successfully completed dbvowner@aos> -- we will assign the CORPORATE_PASSWORD identity dbvowner@aos> -- an OLS label of HIGH dbvowner@aos> BEGIN dbms_macadmCREATE_POLICY_LABEL( identity_factor_name => 'Connection_Type' , identity_factor_value => 'CORPORATE_PASSWORD' , policy_name => 'CUSTOMER_POLICY' , label => 'HIGH' ); END; / PL/SQL procedure successfully completed dbvowner@aos> -- we will assign the OTHER identity dbvowner@aos> -- an OLS label of LOW dbvowner@aos> BEGIN dbms_macadmCREATE_POLICY_LABEL( identity_factor_name => 'Connection_Type' , identity_factor_value => 'OTHER' , policy_name => 'CUSTOMER_POLICY' , label => 'LOW' ); END; / PL/SQL procedure successfully completed dbvowner@aos> COMMIT; Commit complete

As statedat the end of Section813,the matrix inversesolutionis lessefficient thanusing the backslash Both optionsare illustratedin the following example

S o l v i n gt h e B u n g e eJ u m p e rP r o b l e m i t h M A T L A B w ProblemStotement UseMATLAB to solvethebungeejumperproblemdescribedatthe The parameters the problem are for beginningof this chapter

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We now want to examine how our policy behaves using the scenario in which MARY is querying the SHCUSTOMERS table from within the corporate network In this scenario, we expect MARY to be able to see all customers no matter what their credit limit In addition, we expect the effective OLS session label to be the maximum label MARY is authorized to see HIGH

Moss (kg)

Spring Constont (N/m)

Unstretched Cord Length (m)

Profit/loss by change in IBM common price $ 900 720 540 360 180 0 180 360 6856 7288 7720 8152 8584 9016 9448 9880 10312 10744

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CONNECTION_TYPE AUTHENTICATION_METHO CLIENT_IP -------------------- -------------------- -------------------CORPORATE_PASSWORD PASSWORD 1921680200 1 row selected mary@aos> -- query MARY's OLS authorization and mary@aos> -- the effective OLS session label mary@aos> SELECT sa_sessionlabel('CUSTOMER_POLICY') "EFFECTIVE_SESSION_LABEL" FROM DUAL; EFFECTIVE_SESSION_LABEL ----------------------HIGH 1 row selected mary@aos> -- query the SHCUSTOMERS table mary@aos> SELECT cust_credit_limit , count(*) FROM shcustomers GROUP BY cust_credit_limit ORDER BY cust_credit_limit / CUST_CREDIT_LIMIT COUNT(*) ----------------- ---------1500 11334 3000 7975 5000 7724 7000 8634 9000 9093 10000 5935 11000 2935 15000 1870 8 rows selected

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Next we want to examine how our policy behaves when MARY is querying the SHCUSTOMERS table from outside the corporate network In this scenario, we expect MARY to be able to see only customers with a credit limit of LOW In addition, we expect the effective OLS session label to be the maximum label MARY is authorized to see LOW

0 50 50 5867; 18481

4r2020 559170 715130 Alternatively, multiplying the inverse of the coeflicient matrix by the right-hand-sidevec t o r g i v e s t h e s a m er e s u l t :

mary@aos> -- show the Connection_Type factor and session context mary@aos>SELECT DVSYSGET_FACTOR('Connection_Type') Connection_Type , DVSYSGET_FACTOR('Authentication_Method') Authentication_Method , DVSYSGET_FACTOR('Client_IP') Client_IP FROM DUAL; CONNECTION_TYPE AUTHENTICATION_METHO CLIENT_IP -------------------- -------------------- -------------------OTHER PASSWORD 10101010

4r2A2A 559170 7I613A Because jumpers were connected 20-m cords,their initial the by positionsrelative to the platform is >> xl = t20;40;501;

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