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    Subordinated Debt value using riskless rate and Put option

    Hi, how to derive subordinated debt value if we were to deduct Put option price from the Present value of Sub Debt? similar to how we calculate Senior Debt value, where, Senior Debt = PV senior Debt using Riskless rate - Put option on Assets (where Strike = Value of firm) In case of...
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    Course Errors Found in 2021/2022 Study Materials P2.T6. Credit Risk

    I guess the highlighted needs correction. Both sentences are giving same meaning. The first sentence should be "payments are made less frequently"
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    GARP.FRM.PQ.P2 2016 Practice exam q 64 volatility smile (garp16-p2-64)

    Just to re-confirm my understanding, in the Figure 20.1 and 20.3, are below correct? Dashed Green Flat line -> is a lognormal probability distribution Black line (smile and skew) -> is an implied risk-neutral probability distribution obtained from the volatility smile for options of the same...
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    RESOLVED Technical Issue with Mock Exams

    Have you guys added more Mock exams for FRM Part 2? I see only one available at the moment.
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