Recent content by Alex_1

Passed Part 2 and will enjoy some "learnless" time for a while. :) Thanks once more (I can't say it enough) to @David Harper CFA FRM CIPM and @Nicole Manley ! :)

I passed with 3-3-3-3-1, thank you once again David, Nicole and BT guys here!!!! I am still a bit speechless, after the exam I thought I would have to come back again in May. Wish everybody who plans to take the exam in May a lot of success, you can do it!! :)

Thanks, Nicole and let's hope your message brings us "good karma". :) Good luck to everybody!

Hi, I agree with @hamu4ok , just wanted to point out a minor typo: you wrote: "Daily parameters. daily mu=0.14/2500 = 0.00056", should rather be mu = 0.14/250. But I think this was your intention anyway. :) Best regards.

Hi @southeuro, the formula you have listed is basically the DD (distance to default), which calculates the number of standard deviations between the mean of the asset distribution and the default threshold. Once the DD value is obtained, the probability of default is found by evaluating the DD...

Hi @hamu4ok, re your second question: what do you mean by "how it is distributed"? I have understood so far that the CLN buyer receives only the recovery rate (i.e. the percentage of this recovery rate multiplied by the CLN notional for that respective buyer), so technically a buyer of a higher...

Hi @hamu4ok , I am not able to view in my browser the picture you attached in your message, could you try a different form of inserting the picture in the message? Thanks in advance! Alex

Hi, I suggest (from my experience learning for part 1) sticking to the order proposed by the Study Planner: 1- Foundations of Risk Management 2- Quantitative Analysis 3- Financial Markets and Products 4- Valuation and Risk Models (i.e. somewhat different to what you have written). This is...

Hi @anbu.edu, please note that for 2014 in the FRM Part 2 AIMs the following chapters (which you mentioned above) are NOT included any longer: Overview of Private Equity: Stowell, Chapter 16 Trust and Delegation Brown (May 2010) Madoff: A Riot of Red Flags: Detecting Fraud by Investment...

Great idea, thanks for the opportunity, have just completed the survey! Best regards, Alex

Hi, this is what I meant in my post above by "the relationships are indeed equivalent", which for me means they are interchangeable. It all depends on what is given in the question, if the data contains the storage costs (u) and the income dividend (q) it's easiest to use this formula Fo=...

Hi @tosuhn, the relationships above are indeed equivalent, as U represents the present value of storage costs (u) and I stands for the present value of the income dividend (q). There are some further explanations/examples referring to the usage of either the equation using the exponential form...

Thank you Nicole! :) I'll let the prize accrue. Best, Alex

Thank you very much, Nicole! :) Please let it accrue. Best regards, Alex

Hi, well this is one of the questions which (in my opinion) can't be answered with a simple list of topics which will be 100% the most important and on the other hand topics which can be discarded for sure, as the curriculum constantly gets changed. For a starter have a look at the following...