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Hi David, I just found this question taken from past exams, and i didn't understand the answer, can you please help me on this? A trader sells $80 million worth of gold short for six months and buys $80 million worth of gold for six months delivery. This exposes the trader to a: A. Rise...

Thanks David for your prompt reply. Now it's clear. :) Thanks.

Hi David, In this question, I didn't understand why did you convert the forward rate from quarterly compounding to continuous compounding. In question 6.13 it was clear because it says (both with actual/365 and continuous) and because Eurodollars are quoted with actual/360 and quarterly...

Hi David, The questions and problems for this chapter 21 are quite important, do you have solutions for those questions? you do have for the others chapters why not for this one? :) Thanks for your awesome support Ammor.

Hi David, can you please provide a clear answer about this question? 40% of the total auto owners will go for auto insurance, 60% of total home only owners will go for home insurance, 80% of both auto and home owners will go for both auto and home insurance. It is given that at least 65%...

it s a good question im working on it

Thanks David for your prompt reply, I took this question from Scheweser Qbank, find below the Scheweser answer: the correct answer was D) -$110 000 fixed rate component of the swap is 50*1.065*exp(-0.0575)=$50.27M floating rate component 50*1.0625*exp(-0.0575)=$50.16M Hence the...

Hi David, This is a question i found in the FRM past exam, can you please provide me with detailed answer, should we convert the libor 5.75% to descrete or not? "" A bank entered into a 4 year tenor plain vanilla swap three years ago. The agreements of the swap are to pay 6.5% annually...

Hi David, Can you please explain in more details the concept of "Hedge effectiveness" by giving example? Thanks. Ammor