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I passed! 1, 1, 1, 1!!! I’m so happy!! Thank you @David Harper CFA FRM and @Nicole Seaman. It’s not the first time you read this and this certainly won’t be the last, but I couldn’t have done it without BT. Your genuine desire to help people understand the material and pass the exam goes way...

Hi @David Harper CFA FRM, I have a couple of questions related to the study notes on the chapter mentioned in title. Specifically, p97, I am trying to understand using the spreadsheet how we built the overall KR01s hedges to our initial portfolio positions. In particular some columns leave me...

Thank you David for your explanations. They "connect the dots"!!!

Hi @David Harper CFA FRM, Thank you for this paragraph, very helpful in understanding strip vs. stack hedge. However, it also made me realize I have sort of a big question mark on the strip hedge logic. Just to re use your example above, but even if the curve is flatter in my opinion, unless...

Thank you David. Yes, when looking at the forum for answers to my questions, I could see how the gaps in McDonald vs. Hull apporoaches created understandable confusion between lease and convenience yield, which is why I wanted to make sure I got this right. That said, thank you for sharing your...

Hi @David Harper CFA FRM, Allow me to follow-up on the thread above, as I have a question that is closely related to that topic yet slightly different, - if a lease rate of L is associated with my ownership of gold, the futures price F(0,T) will be expressed as F(0,T) = So*exp[r-L]*T -> now...

Hi David, It's perfectly clear now, thank you very much. I very much appreciate the time you take to answer so many questions, and in a way that always make concepts so clear. Really. I don't know how I'd study without BT. Kind regards.

Hi David, I was wondering if you could give an example of how an option on a futures contract would work concretely? I am having a hard time figuring out what are the actual steps on this one. Let's say we have a call for instance - is the strike price the same as the price of the underlying...

@Nicole Seaman , done!

Hello, Just a couple of possible typos I have noticed related to the study notes on Hull Chapter 6 - Interest Rates futures. under the LO "Calculate the final contract price on a Eurodollar futures contract", the June (settlement) contract price reads 990,037.75 instead of the actual...

Hi @David Harper CFA FRM, I have a question regarding the "switch" for lack of a better term, between continuous and discrete compounding, after reading your example in the BT notes p. 55 (derive fwd IR from a set of spot rate). A set of continuously compounded zero rates is provided, which we...

Many, many thanks as usual @David Harper CFA FRM. I’m actually planning to take the test in November (full time job and little baby at home!), so I truly hope I didn’t keep you from answering more pressant questions from the Bionic Turtle community.

Hi @David Harper CFA FRM I think I am getting slightly confused regarding how a cash settlement actually works. - > initially I thought we were basically realizing our payoff: for instance, an investor goes short on a futures contract for 100 bushels of wheat for a total of $10,000. Let's say...

Aaah of course, sorry!! Thank you very much @Nicole Seaman and @David Harper CFA FRM - and apologies for misinterpreting the sentence.

Hi @David Harper CFA FRM , @Nicole Seaman , Regarding Hull, Chapter 1: Introduction (Options, Futures and other Derivatives), p12 of BT study notes read "Options like futures provide a form of leverage". While I agree on the leverage part, is it not a mistake to refer to futures as options...

Hi, I have a few questions following my reading of the syllabus related to Diebold Chapt 5 and 6, as detailed below: (1) linear vs. non linear trends. I seem to remember when reading the Stock and Watson syllabus that the concept of linearity applied to the parameters (i.e. B0, B1, etc.)...

Got it! Thank you again, @David Harper CFA FRM

Thank you very much @David Harper CFA FRM, very helpful as usual! I think I get a little bit confused in my understanding of the F statistic that is replicated in the syllabus, i.e. F= [(SSR r - SSR unr/q) / SSR unr/(n - Kunr -1)]. I understood it as the homoskedastic-only Fstat to be used in...

Hi I have a couple of questions on the syllabus for chapter 7 as detailed below: (1) when we talk about computing the test statistic for a single regression coefficient, we specify that it follows a student's t distribution with n-k-1 df (p43). Which we will compare against the corresponding...

Thank you @David Harper CFA FRM. This helps