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Hi @Nicole Seaman and @David Harper CFA FRM, Chapter 13: Binomial Trees, Page 8, Hull Example 12.8. Should the question not read as "American put option" instead of "European put option" as one of the nodes has been solved using max(intrinsic value,discounted value) of 2 subsequent nodes...

Hi @RaDi7, Just to answer your query, the CFs' will be discounted at the respective forward rates. So the 6 month discounting factor will be 1/(1+(.015/2)) = 0.992556, the discounting factor for year 1 CF will be 0.992556*(1/(1+0.0210/2)) = 0.98224. I am not sure of a method where you can use...

Hi @kansal7mba, The notation used by you in the above example will be read as "1 USD can be exchanged for 1.25 EUR ". The currency that comes first is known as the "Base Currency" and the second one or the one that is used as the reference is known as the "Quoted Currency". The currencies can...

Hi @gargi.adhikari, The explanation for the same is given in pg 16 of the study notes. We will be using (n-2) dof for two variable regression. Thanks, Rajiv

Hi @Nicole Manley, Thanks for your reply. I know you are doing an amazing job managing the site & keeping everything updated. I must add it's not an easy task to do so. Keep up the great effort! Btw my comment on you hating me for giving suggestions was in good fun :D Rajiv

@KJ00 Yes you are right. I too had a similar doubt but soon realized that the daily settlement prices have been rounded off which can be considered an error in the question. But looking at the larger picture, you seem to have to got the concept right. Exam questions will not have such errors. I...

Suggestion: @Nicole Manley & @David Harper CFA FRM: A small suggestion from my end regarding the updates to the study planner. I have downloaded Hull instructional videos & question sets for Financial Markets & Products. I now see "New" against all the four topic areas of Part 1. When I drill...

@Nicole Manley & @David Harper CFA FRM Have a great time. Leave all your worries behind & enjoy your vacation!

Please follow the following steps on your BA II Plus calculator: 1) Press 2nd & the FV key --> Clear TVM 2) Press 30 & N, 5 & I/Y, 250,000 & PV, 0 & FV --> CPT & PMT = 16262.86 3) Press 2nd & the FV key --> Clear TVM 4) Press 30 & N, 4 & I/Y, 250000 & PV, 0 & FV --> CPT & PMT = 14457.52 5) Press...

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