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Hi David, In the Practice Question for Black-Scholes-Merton Model specifically Hull problem Problem 14.16 (Page 60), the price of the call is given and we are to calculate the implied volatility. Its was mentioned previously the the implied volatility is the the volatility where the model price...

Hi David, T4.Tuckman.5 learning spreadsheet is not published ?

found the answer - https://forum.bionicturtle.com/threads/p1-t4-328-delta-gamma-value-at-risk-var.7203/

In the study notes of this chapter. Question and Answers 1, page 37-39. The value of the bond is calculated as 1000*exp(-5%*9). I used the bond keys and calculated the PV = 644.60 I got the result as PV*sigma*normal deviate. = 10.51. If the volatility is daily and the VaR required is daily, why...

That's a good question. But I believe if its an option on a futures contract then the formula is correct. if it was a just a future contract then it will be (1 – d )/(u – d)

Hi, This question reminds of an old question. We have 2 ways to calculate the value of a swap, the bond method and the forward rate agreement method. Which one do you consider a faster way to solve for value in the exam ? I think its the bond method. Having said that, are there any exceptional...

Hi, The BT Material is available throughout this year, however I would like to confirm. Is it that we order it and start using for Nov P1 Exam. Thanks in advance for your suggestion.

Hi, I had this question on my mind, if you attempt the exam Part 1 and you don't pass. Does it effect the percentage of another attempt. Does GARP consider average of all attempts or does it show on the certificate that we passed Part 1 in 2nd attempt.

Hi, The last date for late registration and extension to Nov 2014 exam is next week. What do you think, how much should be our practice test score (for a full length exam) at that time. 50% 60%.

Understood, Thank you David

Consider a 145-day put option at 30 on a stock selling at 27 with an annualized standard deviation of 0.30 when the continuously compounded risk-free rate is 4 percent. The value of the put option is closest to: [round d1 and d2 rather than interpolate for N(.)]. PT = [Xe-r (T) × (1 - N(d2))] -...

Me neither, you can only buy that from from Institute of Financial Market website. URL: http://www.theifm.org/index.php?inc=education/fo.inc

Got it thanks

Hi, If you have gone through Valuation and Risk Models. I have the following question If the current market price of a stock is USD 50, which of the following options on the stock has the highest Gamma 1. Call Option expiring in 30 days with a strike price of USD 50 2. Call Option expiring in 5...