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David, thank you for the compliment. saurav, your statement is correct if you are given that the volatility used to value the ITM/OTM option is the ATM implied volatility. Without knowing what volatility is being used, any option on the chain (ITM/OTM/ATM) could be under/over/correctly valued...

Saurav you're almost right. The vol smirk or smile means that the theoretical price of the OTM/ITM options would be less than the market price if we used the ATM implied volatility (i.e. a flat vol curve). This is because traders believe there is a greater probability of large moves in the...

I'll volunteer to help with the OpRisk questions since they are more clear in what is being asked. #1 There's a 10% chance of having a rogue trader where the loss due to the rogue trader is uniformly distributed between 0 and 100. There's also a 20% chance that due to model risk we suffer...

From my personal experience with Part I last Novermber, what David says is true. There were a few questions that were "challenging", but they just required a little extra thought. The great majority of the questions were on par with GARP practice material and were very straightforward. David's...

passed level 1: 1, 1, 1, 1

Hi Hend, I passed the CFA level one in June with high marks, and I would be happy to share my thoughts on exam preparation. First, to answer your question, the end of chapter questions in the Kaplan books are not similar to the actual exam questions, and imo will not prepare you for the exam...

VJ, I highly encourage you to contact GARP to report this incident. What the proctor did by personally approaching you, and then allowing the other candidate to approach you, was highly inappropriate. This individual should not be invited back to proctor another exam, and can most likely be...

Hi drpepper, I was at Javits in the morning and there was definitely no wall clock. However, if the proctors did not make an announcement when there was a half hour and five minutes left for your test, then they did not follow the proper procedures for the test (see schedule here...

I should add that, after my experience yesterday, I do highly recommend printing out and bringing a list of GARP's policies to the test center. The proctors at my location seemed unfamiliar with the list of approved items, and changed their mind, via general announcements, several times about...

Hey sleepybird, for the record and the benefit of future candidates, the issue here is that you are not allowed to use any type of "desk clock" (see last item in list below). A watch worn on your wrist is explicitly approved, but the only items allowed on your desk are your: FRM Admission...