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After looking over slide 16 again, the BT formula uses F0 notation: (F0-K)e^-rT as opposed to S0 in Hull. Maybe that explains the difference. That is my suspicion

Thanks @brian.field for providing these However, I am still confused as to how the value of a Prepaid Forward = S0. Using the example in Hull, delivery price of a stock is $24 and the current (new S0) price is $25, no dividend, time to expiry in 6 months and r=10%. They then value the forward...

Hello I tried searching the forum but couldn't find any related thread. In the BT slides, the value of a forward is given as: F0=(S0-K)e^rT However, in Hull there is a version presented as: F0=S0e^-qT-Ke^-rT It's kind of confusing because in Hull, the top formula is the value of a forward...

Hello My TI BA II Plus calculator can automatically calculate SD & variance using the STAT & DATA functions. Are we expected to calculate by hand? Seeing as how FRM likes to throw curveball questions, could they throw in a var/SD question that would require a by hand approach?

Hi @Nicole Manley There are no forum links for Study Notes Q&A, but I moved the question over

Hello, I came across this question: 5.. The spot foreign currency exchange rate is EUR/USD $1.4296/$1.4304. Each of the following is true about this quote except: a) The spread is 8 pips b) If the domestic currency is the US dollar (USD), from the perspective of an American trader, as EUR is...

I tried searching the FRM Official Guide for Hull 6.8 and 6.13 but didn't find anything, 6.3 refers to a convexity adjustment. I'm having reconciling the e^rc=(1+Rm/m)^m formula and the a and be approaches noted below: Approach A: continuous, a/365 = 365/90 * LN(1+8.9759%/4) = 9%, which is the...

From what I gather based on this is that: 1. Expected basis is always expected to converge to 0 2. Unexpected basis or weakening should be compared to 0, and not the initial basis at t=0 Is that correct?

Hi, Two quick questions about the exam: 1. I noticed in a lot of the questions, the answer of the first question is required to answer the next question. Is the FRM exam structured like this? 2. What is the recommended decimal usage for the calculator?

Thank you David for the reference!

Hi, Is there a suggested order for going through the study planner? For the first book, I went through the notes, did the questions, and capped it off with the videos. I also wasn't sure how to use the spreadsheets, other than a cursory glance and assist to answer any quantitative questions I...