Exam Feedback November 2019 Part 1 Exam Feedback

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Fisuca

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Customer gives his order to the broker. You can place a limit order at any price, above or below the market. If your order to sell is below the market and the market opens higher, you get the higher price.
The Order was cancelled right after it didnt get through, so it is not a limit order right? Thats why i put fill or kill
 

tweakpun

New Member
Subscriber
Pretty sure it was a short call , can anyone remember?
Yes. I marked the same too, that is, "Fill or Kill".
Moreover, I'm pretty sure that the other question was pertaining to "short call' only....

There was one question on ERM. Anyone remembers if the answer was like "Different business/bank/firm units are allocated budget as per their respective exposures/risk levels...?
 

Maggie3344

New Member
Yes. I marked the same too, that is, "Fill or Kill".
Moreover, I'm pretty sure that the other question was pertaining to "short call' only....

There was one question on ERM. Anyone remembers if the answer was like "Different business/bank/firm units are allocated budget as per their respective exposures/risk levels...?

I have the same answer
 

Fisuca

New Member
Yes. I marked the same too, that is, "Fill or Kill".
Moreover, I'm pretty sure that the other question was pertaining to "short call' only....

There was one question on ERM. Anyone remembers if the answer was like "Different business/bank/firm units are allocated budget as per their respective exposures/risk levels...?
Thats also what i marked, allocate Budget to business lines based on their risk..
 

majorcena

New Member
I think the exam was tough. The questions were lengthy and wisely wordy with ample "other" information to get one distracted. It was very challenging to maintain the time.
I have done so many mistakes and in the end felt completely owned.

How did you find the exam guys?
 

Sixcarbs

Active Member
The Order was cancelled right after it didnt get through, so it is not a limit order right? Thats why i put fill or kill

I don't remember it being cancelled, just remember it not being filled. It was placed the day before, after the close.

A Fill or Kill wouldn't need to be cancelled, it is just filled or killed (Cancelled) automatically.

This is one of the few parts of the exam where I have professional experience. I spent many years working on the trading floor, and I am sure that question described a limit order.
 

randrema

New Member
I can see questions are not the same for blue and red book.
for me (blue) it was asked for:
A short call delta
Type of an automatically cancelled order
I also remember a question with AIC/SIC/MSE and my answer was MSE is inconsistent
Last, I don’t understand why I could’nt get close to a proposed answer for the bonus deffered question! This one is just calculate the PV!
 
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law of one price was near the end. I also couldnt believe they put in a put call arbitrage question. I had no idea how to solve it.
 

Fisuca

New Member
law of one price was near the end. I also couldnt believe they put in a put call arbitrage question. I had no idea how to solve it.
I Think it was buying tue put and Stock, selling the call and borrowing to finance the putchase at the Risk free rate as s+p < c + PV(K)
 

adeex18

New Member
I agree with your assessment. The main issue for me was also time, There were way too many questions that require multiple steps calculation to derive the answer especially those Swaps. I had to guess on several questions that I could have solved if I had more time. Also felt the first 50 to 60 questions were OK but the last 40 or so came out of nowhere. what do you guys think would qualify for a passing score given the level of difficulty?
 

tweakpun

New Member
Subscriber
The answer to the options trading strategy should be "straddle", right?
I found the exam lengthy as well. I had to cut short/guess on a good number of questions. Even the answers were not matching in a few, like in the question pertaining to the option pricing using the Black-Scholes model...I wasted a good amount of time on them..sigh!
 

randrema

New Member
The answer to the options trading strategy should be "straddle", right?
I found the exam lengthy as well. I had to cut short/guess on a good number of questions. Even the answers were not matching in a few, like in the question pertaining to the option pricing using the Black-Scholes model...I wasted a good amount of time on them..sigh!

I did not have straddle as answer. I had strangle (blue book).
 
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