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Hi David, As far as i know linear regression is linear in the parameters - i wonder can u post the refernce to Gujarati that says that linear model is linear in the parameters( may or may not be linear in the variables) Thanks

David - thanks I got it

Hi David, If there is a relationship between the independent variables, but it is not linear relationship, is the model still contained multicollinearity ? Thanks

Hi Srinivas In my opinion the Calculation is = 0.5%*4.23=2.115% ~2.12% The Explanation is Related to fact that Effective Duration recognize that cash flow may change because of embeeded option Callable corporate bond is like plain vanila bond with option so we need to use it in order...

Hi srinivas According to My understanding (and I'm not an expert at all ....) It seems to me that the time value is not negative all the time, for example if I sell a Put option with a short term maturity I will enjoy the depreciation of time so the impact can be possitive Regard Vega...

Hi David, Very interesting - it's what I thought .. like you always say the basis risk is the mother of all risks and so Theoretically speaking i can say - Even if cofficient correlation between asset and contract equal one and the variance identical - Hypothetical there is some BASIS RISK nice

Hi David, If i am right basis risk is zero when cofficient correlation between asset and contract equal one and the variance identical but what if there are storage cost ? Is it still zero? Thanks

Hi David Your answer made it clear

Hi suzanne' i am confused http://www.bionicturtle.com/learn/article/skewness_and_kurtosis_quantitative/ you say "Financial asset returns are typically considered (i.e., heavy or fat- tailed)" in the reading i find that return distribution i s normal but price distribution is lognormal...

Hi David Thank you for the clarification ... as usual your explanation is clear ... I wanted to ask another question about exotic options .. I could not understand whether they are included at lvl1 ? TNX

Hi David, I wanted to Refine the source of the difference Between future / forward contract can i say it because the volatility (convexity adjustment) - technical reasons or because more real reasons like, mtm, otc, margin etc... Best Regards

is inverse floater is part of aims 2010 ?

Hi David i cant understand why strength of the basis is good for short seller ? if i enterd into short position i have a commitment to sell in the future at fix price so i cant enjoy the fact that the spot is rising cause my price is already fix tnx

David Thanks, I also wanted to ask you 2 more question: 1. just to Clarify dollar duration and DV01 is the same right ? the change in dollar terms for 1 bp change 2. page 75 in valuation 1000 par bond 4% semiannual coupon 10 year to maturity 6% yield using BA Pluse n=20...

Hi David Your Summaries of the material explain very well the material for the exam but i cant Wondered is it Enough ? Do you recommend further reading ( i know that garp Advertise reading list) I read and solve question that you upload to the website but atill i feel that i am not ready...

The dividend yield of an asset is 10% per annum. what is the delta of a long forward contract on the asset with 6 month to maturity ? a. 0.95 b 1 c 1.05 d cant be determnined ANSWER is 0.95 . I think its wrong cause the delta of a long forward is 1 . if it was a future then th...