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There was this question on improving ES metric (something of that sort) I marked the option by increasing sample size and there was this other question for which I marked that increasing sample size would reduce probability of Type II error. Hopefully I got them right.

I I agree with global collateral something. Regarding ABCP guess I marked something with regulatory exemptions because that was the main reason why they were issued heavily before subprime. Maybe I could be wrong

Why there would be demand for ITM calls as question is clearly saying market has started factoring demand forOTM call. So for equilibrium to maintain logically demand would shift to OTM call from ITM call. So heavy left tail makes little sense to me. Anyone would like to throw insight on this?

I beg to differ on that, the question specifically mentioned later that market has started to factor demand fot OTM call which would imply higher price for OTM calls and thus higher implied volatility. And thus my choice was upward shaping implied volatility curve with heavy right tails and...

Became curious after reading this thread and logged into GARP website and went to the Registration page, it is allowing me to register for Part 2 exam. So I feel it is over for me. Anyways, it was looking like a borderline case for me. ATB. :)

With respect to LVar question having 80bps spread, I remember getting Var of around 26000 and for LC i remember it to around 17000. so LVar= Var+LC around 43100. Hope i got it right because i was not so sure about my LC calculation out there. @ Johnson - Only around 30 questions would have been...