yeah, I was spending too much time on that one and was wondering whether they gave us missing information. I tried to assume risk free rate equals 0 but still cannot get the right answer. That question is strange.
I am also surprised that there are not much questions involving VaR using...
Can someone please explain to me how to calculate the probability of getting Type I and II errors? and is it true that if we increase the confidence level, it would reduce probability of getting type I error? and if we increase n, it would help reducing the probability of getting type II error...
In general, Do you find GARP end of chapter questions are helpful for preparation? Or should I just focus on BT questions. I don’t have enough time to go through everything lol
Is there any question related to Insurance and Pension Plan topic? I am having hard time to understand and memorize the ways to calculate these probabilities and premium payment and such? and I seriously dont wanna try to remember since there are more important topics to remember than this one.
Does anyone has any trick to remember the relationship between options greeks and maturity? I always find it hard time to determine how greeks (either ATM, or ITM) behaves regarding maturity? Also, whenever questions asked, for example, whether ATM delta decreases/increases at maturity...
@David Harper CFA FRM regarding the question below, can you please explain to me why D is not the right answer? As risk free rate increases, the value of the put decreases, which makes it less likely to be exercised early. And vise versa, when risk free declines, the value of put options...
@David Harper CFA FRM why is #3 wrong? I thought the YTM would be realized return if the rate stay flats and the coupon is reinvest at the same rate as YTM
So what are your suggestions for the last couple days before the exam? I am kind of overwhelming now. I currently go back and redo all BT practice questions for each part
does the exam contains more math-solving problems than theoretical questions? like what kind of percentages cause I am struggling with memorizing theories. My exam day is this coming November
So the currency pair is quoted as "Base/Quote", i.e. 1.4 EURUSD means 1.4 USD = 1.4 EUR. In this case, it the quoted currency consider as domestic or foreign? I always messed this up in the Interest Rate Parity formula. Thanks
Hi @David Harper CFA FRM, can you explain to me how you get the CFs of 0.5 in the screenshot below? Also, you introduced many to value a swap in this chapter, are both methods will be tested on the exam?
thanks a lot @David Harper CFA FRM . I am not aware that we have to transfer to frequency compounding to use the calculator. And in the exam, would it clarify which duration we should calculate? Or we just assume it is Mac duration unless the security has an embedded option
Hull.4.22:
A 5-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of
each year.
What is the bond’s price?
What is bond’s duration?
Instead of setting the CF table as shows in the Answer, I am trying to use my calculator to calculate the price given 2% change in...
In this chapter, the study notes mention the following paragraph regarding lease rate
"The lease rate of gold varies with the supply of gold that can be borrowed along with the
demand to borrow gold. Recall that when gold producers hedge future production, the banks
on the other side of the...
I did that but the site only allows you to download PDF for those practice questions but like clicking right on the site before. Also, I did not see any instructed videos under any of my chapter. Just the study lesson and quizzes. Is that true?
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