Exam Feedback October 2020 Part 1 Exam Feedback
- Thread starter Nicole Seaman
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You are talking about the American option (from the red booklet)?
My two cents: My impression was that the exam was pretty much as expected after having prepared with the GARP books and the GARP practice exam. Except one single question there were no real surprises.
However, I'm pretty sure that I did answer some questions wrongly (about 7) and was hesitating with some more (maybe 15), plus there will be some more unknown mistakes, too. At the end of the day I managed to finish on time but it was tight and I would have scored better with some more time. But that's the game and I'll accept. Realistically, it will get very tight in my case.
Regards,
Frodo
However, I'm pretty sure that I did answer some questions wrongly (about 7) and was hesitating with some more (maybe 15), plus there will be some more unknown mistakes, too. At the end of the day I managed to finish on time but it was tight and I would have scored better with some more time. But that's the game and I'll accept. Realistically, it will get very tight in my case.
Regards,
Frodo
Eustice_Langham
Active Member
Yes....
It was simple, you just had to take the upper node option value with the upward neutral probability and discount it (and do this process 2 times)... from what I recall there was no need to take the intrinsic value that could have been obtained from exercising the american option.
Additionally, all values (stocks, neutral prob) were given, it was just plug and compute
Correct, I proceeded as you mention. Very straightforward.
@czet “The only question in that exercise was whether to calculate the SD by dividing by n or n-1. I went for n-1 since it's a sample standard deviation. Oh and also not forgetting to take the square root.[/QUOTE]”
It was a sample so it is more appropriate to divide by n-1 but don’t think they will penalize you if you divided by n.
It was a sample so it is more appropriate to divide by n-1 but don’t think they will penalize you if you divided by n.
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It was a sample so it is more appropriate to divide by n-1 but don’t think they will penalize you if you divided by n.[/QUOTE]
If I remember correctly there were both results as possible solution. Therefore, I guess dividing by n instead of n-1 will be considered as wrong.
Until I had to go out, I did feel the exam was very straightforward
Well, you didn’t get to see the whole thing.
thanhtam92
Active Member
does the exam contains more math-solving problems than theoretical questions? like what kind of percentages cause I am struggling with memorizing theories. My exam day is this coming November
As far as I remember there were about 30 - 40% practical questions. Others might correct me...
thanks thanhtam92 for your question , kindly if anyone know exactly the percentage of theoretical questions in exam ?
Thank you for this information. May I ask how many year of GARP's practical questions have you prepared?
Sorry I overlooked your reply. I thought you were mentioning some old GARP practice questions appeared in the actual exam, so I asked about how many practice questions have you done to prepare for the exam.
maartenvdz
New Member
Does anyone know when we can expect the results for this exam ? I know the GARP website states November 29th, but this is on a Sunday, so maybe they will be sent out earlier ?
Actually, now I’m curious how we will receive our grades on the 29th.
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