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I received, word-for-word, the same canned email twice from GARP when I recently asked if the November 2020 Melbourne exam would be rescheduled. Here is the Victorian government reopening plan...

Melbourne's situation is pretty unusual, and GARP's communication has been poor. Currently, the exam venue (Melbourne Exhibition Centre) is still closed, and the threshold for reopening is very strict in terms of the statewide rolling two week average daily COVID-19 cases falling below a certain...

I'm ok with whatever GARP decides. It would just be good to know their contingency plan.

I don't know how many forum members are from Melbourne, Australia, but I would say the probability of the FRM exam taking place here this year is close to to zero after today's announcement from the Victorian government. A minor inconvenience compared to being on a ventilator, but annoying...

Legend. Thanks.

I think there is a mistake in the answer to GARP question 10.20 in book 4. 10.20 The cash prices of 6-month and one-year Treasury bills are 97.0 and 93.0. A 1.5-year and two-year Treasury bond with coupons at the rate of 6% per year sell for 98.5 and 97.5. Calculate the six-month, 12-month...

Do we need to memorize the Vasicek formula to calculated required capital at the 99.9% confidence interval?

Hi, What are likely exam questions to do with P1.T4 chapter 6? I've found the GARP reading quite challenging. I'm not sure how this might be tested on the FRM part 1 exam, since the emphasis in the readings was mathematically deriving the models. I'd be curious for your insights. Are there are...

I think you should write to GARP and explain your situation. I'd be very surprised if they didn't waive the fee for deferring the exam. I live in Melbourne and am registered for the 21st November exam here. There's a decent chance I think the exam can go ahead in November (not sure about...

I just heard that GARP is using remote proctoring for the SCR certificate too. Perhaps they will do something similar for FRM. Anyway, Melbourne's daily case numbers are rapidly declining, so we might just get a long enough reprieve from COVID in November for the exam to take place as planned...

Very helpful, thanks! I will make sure I post the question next time.

Hi Dave, Do you get the same result as the book for question 19.14? My initial bond price calculation (14 coupon periods, semiannual yield of 3%, coupon = 2) gives a price of 88.7039. Then discounted by three months to 87.4026. The book has something different. Have I missed something here?

Hi all, Having so far invested approximately 100 hours preparing for the November 21 FRM level 1, I'm getting nervous given right now in Melbourne, we still cannot leave our homes for most reasons, and are restricted to a 5 km radius. It seems highly likely to me that the some form of...

Thanks Dave. I think I must have mistyped something minor on my calculator, as when I repeat the calculation this morning after some sleep, I get 3.7179 instead of something slightly different. At least, in the process of working it out, I effectively derived the formula (c/m)A + 100d = 100...

Question 16.16: The six-month, 12-month, 18-month, and 24-month zero rates are 5%, 5.5%, 6%, and 6.5% (all measured with semi-annual compounding) respectively. What is the two-year par yield for a bond paying coupons every six months? For the par yield, I keep getting 6.41%, and A= 3.7465...

I found the diagram confusing, so would be interested to know David's take on it. The main bit of information to digest from this is that it is possible to replicate exotic options using a linear combination of vanilla options. A classic example is the use of a call spread (bull spread) with...

Very helpful, thank you.

Hi, This is my first post on this forum. I have a question about the following definition: The basic idea of APT is that investors can create a zero-beta portfolio with zero net investment. What is meant by zero net investment in this context? Thanks!