Hi Nicole, hi David,
thank you for the moving my question to the right thread. Sorry, I couldn't find this thread. :-( Searched for GARP Practice exam 2016 question 66.
Best regards!
Hi David,
could you please explain the calculations in question 66 of the practice exam?
We got 2*σ since 80 - 32 = 48 = 2*24 and 1.5*σ since 116 - 80 = 36 = 1.5*24. But I don't get the rest of the calculation.
Thank you very much und kind regards!
Hi David,
could you please check whether one can solve the question 43 using the PV-function in the calculator? Here is the question:
I get an answer 1,011.74 when I use my calculator. Do I made a mistake? I calculate so: N=3; I/Y=2.2/2=1.1; PMT=15; FV=1,000 -> CPT PV = 1,011.74. Here is the...
Hi David,
thank you very much for your explanation! My mistake was that I didn't know that futures are cash settled , so I don't need to take delivery. That was the problem. Thank you very and best regards!
Hi David,
please excuse me that I ask you again what Hend Abuenein already asked but I just cannot understand your answers :-(. Could you please explain why in a strip hedge a producer goes long futures contract (not using the MG case but just in general)?
As you explained above it is a hedge...
Hi David,
could you please explain the answer in Problem 18.12:
Will the trader gain from large movements only with this portfolio (long calls + long puts) or is it a general statement? As I think if I had only long calls position (=positive gamma) I would gain from a large increase in the...
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