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Thanks so much for the very valuable insights @David Harper CFA FRM and @berrymucho - indebted to you for shedding light on this topic ! Think I finally got to wrap my head around this after deriving the whole thing from scratch and looking at your inputs- THANK YOU !

Thanks so much for the clarification @David Harper CFA FRM :):)...thought I was missing something conceptually... :(

Thanks @David Harper CFA FRM ....why the Negative -1.460 as in the number set it is provided as a +ve No ...?

Hi, In Reference to R16.P1.T2.HULL_CH11:Topic:BIVARIATE_NORMAL_DISTRIBUTION_Eg :- While Generating the Correlated Sample X(1) & X(2), why are we plugging in the -ve of e(1) & e(2) in the formula ....? :(:(

Thanks so much @Nicole Seaman for pointing me to the thread on the topic...I had searched by "positive semi definite" and had scanned all the existing threads....but was not able to find the underlying explanation as to what was meant my the Covariance matrix being "Internally Consistent " ...

Hi, In reference to R16.P1.T2.HULL_CH11:Topic: VARIANCE_COVARIANCE_MATRIX_+VE_SEMI_DEFINITE Can anyone explain what is meant by the "Variance-Covariance Matrix" In order to be "Internally Consistent" has to satisfy the condition of w * C * wT =>+Ve Semi Definite" ...? What is "w" here...

Thanks so much @David Harper CFA FRM for your inputs on this...always helpful....yes that's a bit of a fear I have about getting confused or misinterpreting the verbiage in the exam..and I need to train my brain accordingly ...hence your clarifications helped a lot as usual - again - my...

In Reference to R16.P1.T2.HULL_CH11_TOPIC:UPDATED_CORRELATION_using_GARCH :- Hi, I have a couple of questions on this problem statement illustrated below:- 1) Omega (Correlation ) = .000001 This Omega is for the Correlation.Why are we using the same coefficient for the Covariance as well..? 2)...

Got it Thanks so much @David Harper CFA FRM

Hi, In Reference to R10.P1.T1.BODIE_CH10_DIVERSIFICATION_of_RESIDUAL_RISK :- The Weighted-Variance of the Residual Risk = Avg-Variance of Residual Risk/ N =[ (Std-Dev of Residual Risk) ^ 2 / N ] / N The Avg-Volatility = ( Std-Dev/ N ) = 40% So, the Last term should be just (40% ) ^2...

@David Harper CFA FRM Thanks so much ...lol....yes..i agree with the blend of ours ..lol...my arithmetic was always bad but this was pathetic even by my standards ... so dependent on calculators..damn... lol :):):rolleyes::rolleyes:

Thanks so much @David Harper CFA FRM for elaborating the above - very grateful :):):rolleyes:- I see now where I was going wrong misinterpreting the given specs and how Hull's example fits the rule described...One small clarification though ...by any chance, did you mean the Min Value to be...

Thanks so much @David Harper CFA FRM for sharing your insights above. I have a few follow up questions/clarifications to make sure I interpret GARP's verbiage as correctly as I can... So for Point # 1 , my question is that should the Max Contract Price of 30$ apply only if the...

Thanks so much @David Harper CFA FRM for all the help on this one... So...the Alternative Approach seems less likely as you very correctly pointed out as the 1% does not apply but also is it because the $-Amount of our trade(=$ 2400) does lie in that range($2500 to $10,000)...? The 1st...

In Reference to FIN_PRODS_HULL_CH2_COMMISSIONS :- Question # 1 : Why should we "Assume" an additional Commission of .75 % outside of the Commission Structure defined by Table 10.1 Question # 2 : i) So we pay Commission while purchasing 1 Contract-> $ 30 ii) We pay a 2nd Commission while...

Thanks @David Harper CFA FRM for explaining the way only u can :):):cool::cool: Salute ! Totally get it now- thanks to you :-)

Thanks so much @David Harper CFA FRM for the explanation above and Thanks @berrymucho for the visual charts - it definitely helps a lot to have a visual map for the different forces affecting Bond Prices. Cannot thank you enough for the charts :):) On a second note, I now understand...

@David Harper CFA FRM Do Zero-Coupon Bonds have the highest + ve Convexity ? If so why .. :-( ..? Trying to wrap my head around the Correlation between Coupon Rates and Degree of Convexity....:confused::confused:

@Nicole Seaman @David Harper CFA FRM I will circle back on this and get back shortly...I was revisiting this chapter from notes I had earlier made on it...will see where I had gotten that from...until then apologize the inconvenience...

Hi, In Reference to R28.P1.T4.TUCKMAN_CH2_$_VALUE_of_ZERO :- Wanted to confirm if $_VALUE_of_ZERO = $_VALUE_of_BASIS_POINTS ?