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GAARP seems to have quite a number of errors either in their practice exams or solutions . I found atleast 2 in the 2006 paper

hey Shakti , could it be possible to do stuff when gamma is largest , and theta . I mean applications of greeks. The above is very helpful

For Shakti long call P/O= max(S-X,0) short call P/O= premium-max(S-X,0) Payoffs do not include premiums. Only maximum gains and losses I guess it would be better to say that long call P/O= max(S-X,0) short call P/O= -max(S-X,0) hence short call P/O=- long call P/O

I got this question Suppose stock xyz is trading at $50 and there is a call option that trades on XYZ with an exercise price of $45 which expires in 3 months . The risk fee rate is 5% and SD of returns is 12% annualised. Determine value of the call options gamma. Assume d1 is 1.99 and N( d1) is...

Thanks so much for your solution , great help , could you mind explaining the intuition . I don't remember reading this in the text.

Monte Carlo simulation returns consists of 100 replications returns a 95% VAR quantile of 1.645 with Standard Error of 0.40 such that the confidence interval for the VAR quantile is [1.245, 2.045.]This standard error is deemed too high. How many replications are approximately required to reduce...

For 206.2 I thought the cheapest to deliver bond on maturity is defined to be the one for which the adjusted spot price is the lowest i.e 115/1.1=104,545455 130/1.28=101.5625

Hi Suzanne/ David Saw your below link on calculator usage. : http://www.bionicturtle.com/faqs/ca...at_is_the_best_calculator_you_would_recommend I too am a Texas Instruments fan, One thing I found out using the TI BA II+ professional while writing the CFA level 1 is that the buttons jam...

Hi Suzanne Please let my amazon gift card accumulate

I also want to add that gold is an investment commodity whereas silver can be both . ( maybe considering in India, gold is a huge consumption commodity)

Hi David and all This is in connection with the above and hull as per hull, Gold owners such as the central banks charge interest in the form of what is known as a gold lease rate when they lend gold. the same is true of silver. Gold and Silver can therefore provide income to the holder . Like...

To put it simply the dividend yield is synonymous with the convenience yield

http://www.rotman.utoronto.ca/~hull/DownloadablePublications/LIBORvsOIS.pdf A little late at jumping on the bandwagon . But the above link provides some really useful insights.