in regards to the previous chain thread....
(1) Asked which is correct related to MBS with choices?
-2 Choices that I think were wrong
-"OAS" being a spread to interest rate paths (but the way it was worded seemed wrong)
-The prepayment option of MBS is attractive when PV of scheduled principal payments is less than the outstanding principal
Yes, these two were wrong. But i forgot the answer I put down but i know for a fact i didn't select these two.
(2) If you think stock value will double what strategy is best?
-Protective Put
-Covered Call
-Bull spread of call options
-Bear spread of call options (or might have said put options)
I said bull spread of call options.
Also, yes for that other question, I said poison pill as well.
for the 1-day 99% to 10-day 95% VAR. You had to...
1) divide by 2.33
2) times by 1.65
3) times by sqrt 10
that's what I did at least.
On 1, I see, yeah I was not sure on that one. I picked the last one, but it doesn't sound right anymore to me.
On 2. I think you're right. I picked covered call, but after reviewing definition of covered call that is definitely not answer.
On VaR, wow I missed that 95% on the exam and thought it was 99%. No wonder I couldn't get as close I would like (I thought issue was my approximation of sqrt(10), but guess I have to read more carefully next time).
I'm not sure what the marginal passing score is for this exam though. Does anyone have a rough idea how many questions you need to pass this exam?
There was also a ethics question about confidentiality. I said you need consent before you can use confidential information.
I agree on the ethics question (that was only reasonable answer).
It's all speculative, but I think mid-high 60 / low 70 for pass.