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Happy Birthday David Harper!

Hi @gargi.adhikari did you tried solving this, with converting dividend yield to continuous? I tried this and I got answer 1313.06521, I think difference is not that much, that's why they are not converted(my logic, @David Harper CFA FRM can elaborate more!). On actual exam I don't think there...

Happy Birthday David! Thank you for creating this forum and for such great study material

Happy thanksgiving @David Harper CFA FRM and @Nicole Seaman. Enjoy your holiday:)!

Hi @Angelinelyt you are assuming rate are continuously compounded, but rates are discrete compounding, read question carefully it says 4% rate per year, it means you should use formula Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate), so 1.25*(1.04/1.07)=1.21495 or round to...

Hi @Angelinelyt Ft =S0 * e(r-rf)T should be used when rates are continuously compounded and, Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate) should be used when rates are discrete compounding (yearly, half yearly). Hope that helps you! Thank you:)!

Hi @frmqiu it is conditional default probability it should be calculated as default in 2nd year - default in 1st year/survival in 1st year = 0.27385-0.14789/0.85214=0.14782. Hope that helps. Thank you:)!

Answer of 3rd question should be C, because 44.9*1.0137=45.52 and 45.52-44.9=0.61513 or 0.62 simply means we have to sell additional 0.62 to hedge position completely. Hope I am right. Thank you:)!

Thank you so much @Nicole Seaman please let it accrue. Thank you:)!

Hi @frmqiu I think you are using old practice exam. David has reported garp this issue and garp has updated many of the answers, I can see A as a answer in my practice exam. Try to download it again. Thank you:)!

Please add me @arkabose my number is +919767405334. Thank you :)!

Thank you so much @Nicole Manley. Please let it accrue. I appreciate it! Thank you:)!

Hi @emilioalzamora1, as you know var is the worst expected loss. As question stated there is 1/90 chance of lossing 1000000 that clear means that var is non zero because there is some loss chance. Confidence level is estimated as 100%*(1-p), chances/probability is given as 1/90. Hope that...

Hi @no_ming you are right! (for more clarrification view https://forum.bionicturtle.com/threads/individual-var-vs-component-var.1373/). In this question you do not need to apply defination of component var here ( I think question wil clearly ask you to calculate component var, not sure @David...

Hi @no_ming what I understands from question is that what will be the reduction in portfolio var? We are not asked portfolio component var here. They are simply asking if you drop the asset 1 from portfolio what will be reduction in portfolio var they are not asking what will be portfolio var...

Thank you so much @Nicole Manley please let it accrue. Thank you:)!

No problem @brian.field it happens many time with me, then I have to change it back:D!

Thank you so much @Nicole Manley :)! Please let it accrue. Thank you:)

Thank you so much @Dr. Jayanthi Sankaran that is a great article! Thank you for ssharing:)!