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In the first place the candidate without the calculator is in itself a sign of un preparedness. Even if you gave the calculator for argument sake, I can bet for sure that the candidate would not have passed the exam.

Could please elaborate more on the actuarial opportunities that you mentioned - 1) Course details 2) Exam details 3) Prep Providers 4) Most reputed exam authority. Thanks Bhar

What about the Amaranth episode and its bet on the oil markets ?

CFA is good go for it.

Hi David, Suzanne Yes, I agree too. Mocks are better way to work towards the final day. Thanks

This is very helpful. Is it possible to publish a similar topics wise list for the other 3 topics as well in Part 1 or direct me to the location for the questions on the other 3 parts.

The solution to this comes to 4.2 while in the choices the answer has only 4. How does GARP actually justify this large differences in actual answers vs choices provided ?

Should the time be .25 instead of .125 as you have taken. Please ignore. Shot it out too fast. It was solved as 45/360 or .25/2 Thanks

Thanks David. Very helpful.

Thanks a lot. That helps. Though a longish one, It helps understanding the concepts.

I solved it this way. 40*(1.2)^2 = 57.6 - 37 = 20.6 20.6 * (0.67^2) * e^(-0.08*.25) = 9.064

What is the value of a 2 step EUR call option? st = 40; rf = 8%; 2 step eur call; k=37; proportion of up move = 1.2; probablity of up move = .67; t = 3 months

Hi On Page 29, Index futures contract - example to reduce the beta from 1.5 to 1.2, the answer should be 9.67 contracts and not 97 contracts. Could you please clarify. The problem details are - Current Beta - 1.5 Target Beta - 1.2 Present Portoflio Value = 10m Index contract price , 1 contract...

Where are you located, Alex ?

Ok great. The additional thread has clarified some more doubts. Thanks David.

Thanks David. That helps a lot.

Hi Current Position - Long Call; Position Delta +ve; Delta Neutralising trx - short stock Current Position - Short Call; Position delta -ve; Delta Neutralising trx - Long stock Current Position - Long Put; Position Delta -ve; Delta Neutralising trx - Long stock Current Position - Short Put...

Hi I came across this assignment problem in Hull. I tried to solve it but would like to get a correct answer to this problem. Could you please help. I have ignored the vega neutralising requirement from the original question as it is low testability. The answer I got - Gamma Neutralising trade...

Hi In the mock Exam question number - 10 - the solution for R^2 is mentioned as True: Beta(P w.r.t. B) = correlation*vol(P)/vol(B), such that correlation = beta(P,B)*vol(B)/vol(P) and R^2 = Beta^2*vol(B)^2/vol(P)^2. In this case, R^2 = 0.8650*1.4090%^2/1.3240%^2 = 0.8474 In the substitution...

Thanks David. Surely your notes in that section are very clear and precise. Especially the Operational Risk, Stress Testing topics.