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One more question was what is the 1-p of an option with 1 step with two years horison... this was tricky because of the two years horison. i beleive that the correct answer was 53%. what do you think?

i think that the correcclt answer is that the traders become less risk adverse... in order to cover their losses thay took higher positions so the became less risk adverse....

Does someone remember the answers to the following qwestions? 1. BLR, is it 17.5 Million? 2. What is part of Risk assesment? 3. The role of a Management? 4. Short FWD EUR/USD of 50 million EUR. gain of 1.584 million. 5. Lower duration with zero coupon? 6. MC simulation, what is the correct...

Hi, I cannot find the spreadsheets for that part of the FRM. For example 8.2 that is mentioned in Miller's video... Please help. Thanks, Noa

Hi, The link to the answers does not work... Thanks, Noa

Hi David, Please note that in the study notes you gave this example with a wrong data: it the third bond: 5.25 instead of 6.25... :confused:

Hi David, Regarding the examples that you gave in the study notes which are demonstrated in spreadsheet P1.T3.3b: Why the EXP is in terms of monthes insted of terms of years? for example page 74, the bond with price of $900 with time to maturity if 9 monthes, the EXP of time is 9 and not...

Hi David, Thank you so much. It helps a lot. Appreciate your effort. Noa.

Hi David, Thank you and Shakti for your reply. Since my background is not that mathematic, and it is important to me to simplify things as much as possible for the exam (mainly because the time learning is getting shorter), if it is possible, can you provide me a guide line when (for the...

Hi David, I have two questions regarding the above: 1. On part 3, Products, modified duration is described as: Modified Duration = Macaulay Duration / (1 + yield/k) where k = compound periods per year. In Tuckman Chapter 4, it is as follow: D=V- - V+/2*(v0)* (delta y) What is the difference...

thank you both... it seems that i need some rest.... Noa.

Hi David, I'm trying to answer the practice questions regarding the topic and I can't understand why my unswer is wrong (the spreadsheet that supose to be attached to these answers is not valid any more) can help me with the solution path, for the following question, please? I followed the...

Hi, Regarding this qoestion... Are we going to receive the cumulative normal distribution table in the FRM exam? Thanks, Noa

Hi David, Regardind the first question of Hull's chapter 11, question no. 11.01: according to the study notes, p formula is a function of: EXP(-r*t)-d/u-d=p. so: u is: 42/40=1.05 d is: 38/40=0.95 p=EXP(-0.08*1/12)-0.95/1.05-.95=0.433 1-p=0.5669 according to that, the value of a call option...

Thank you both...

Hi David, Most of the questions regarding future contract on commodities in the practice questions, assume that we know ( or should know) the size of the contract (for example oil, gold, corn, etc.). For the FRM exam, Do we need to know by heart the size of ANY commodity future contract...

Hello, Can I have an explanation (calculation) how to calculate the critical t of 2.262 in the example on page 56 (P1.T1 Quantitative Analysis)? Thanks, Noa.