David Harper CFA FRM

A credit simulation ran for a 15 day period, to calculate capital required to cover the credit risk. I understand an upcoming payment for the out-of-the-money counterparty within the 15 day period, would increase the capital required. However, how come when the in-the-money counterparty makes a payment the capital required also increases? so what would make counterparty exposure decrease in this scenario?

Hi!
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I'm confused about forward interest rate calculation, Hull (ch 4) uses RF=(R2T2-R1T1)/(T2-T1), Tuckman instead computes from formula (1+r(0,2)/2)^4=(1+r(0,1.5)/2)^3+(1+f(1.5,2.0)/2)^1. I'm sure the answer is just here but I can't see... Is it about compounding? Or can I just be happy with Hull's formula for the exam?
Thank you!
Kaari

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Wanted to review the answer for P1.T2.212. Difference between two means. I have signed in and activated. not sure what else needs to be completed. Before I order I want to make sure the answers provide a good explanation. I am one of those who study best by reviewing questions.