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IMO - Preferreds should be included as they are a form of equity - Schweser includes them I think. Picked 8.8

For the option one, I chose both would increase. My crappy logic (potentially) was that as the call becomes more in the money the delta would increase (deep in the money calls have a delta of close to 1) and the delta for put would deviate away from -1 and towards 0 (as deep in the money puts...

Each question was basically an essay, making time management essential.

The only question that matters at this point is "What's the cutoff"

* They loved CDS - One should know everything related to them. In particular about PD and Spreads * Several questions on VaRs (Calculation heavy) * Felt like half the test was on CVA * QQ Plot - The endpoints didn't deviate from the line but there were bulge in the endpoints in the same...

I can barely type right now

Good luck everyone

1 more hour and that's it

Thanks @David Harper CFA FRM , Thanks for clarifying and thanks for all the help. Gotta go check into the hotel where the exam is being offered. Good luck for the exam today (India) @Delo

Hi @Delo, For the purpose of the exam then, you should assume it incorporates prepayments. While I worked in pricing for several years, I've seen WALs both with and without any prepayment assumptions. When a new agency MBS was issued, the WAL for the pool didn't always include prepayment...

I already know how I'm going to feel tomorrow

Hi @Delo, WAM = Weighted Average Maturity --> Sum of individual % loan weight (relative to pool outstanding balance) times it's remaining maturity WAL = Weighted Average Life --> Sum of individual % payment relative to total scheduled payments times term. It's similar to duration but more...

It's probably the best time to bring this back into play. To the top

Calculator battery just died...

Beat down, exhausted, and frustrated. Today most of us know what these words mean. Hang in there...