Search results

I know this concept, bad sadly think I missed it. I think I had in my head stack meant bigger (series of contracts) and strip was smaller (individual short term contracts). Stack is the month to month, and strip is the series :mad:

I hope you are right, I guessed that :)

I was not aware of a defined threshold. I could be wrong though.

There is no way to really know this. I am having anxiety about it too, like everyone else. I might stop coming to this thread, I think it makes it worse! Someone posted 70-75 and that sounds about right but it’s really a complete guess.

Damn, I missed this one then I think. I remember speeding through it because I thought it was asking what the new EL was based on 45MM.

Lol, you should calculate the variance! :cool:

Crap -- I might have missed this if I am understanding you correct. I thought it was an EL calc based on a decrease from $55MM to $45MM. I calculated the EL based on 45MM and there was an answer for it, although might have been a trick. I remember kind of seeing that one and looking straight...

I remember having a square root sign drawn, but now you are bringing some doubt into my mind, whether I did that or not lol.

I had to mark this and come back. I initially did the portfolio variance calc with the weights being the returns (12% & 8%). Came back to it and realized I should have used the weights being the .4/.6 for the $ value. Then I believe I got one of the answers with that result in the...

Anyone remember what they put for the foundations question asking for line mgmt., portfolio mgmt., risk analytics, governance, etc. I think I put Governance.

Used this and found the answer. For the AIC question... It threw me for a quick loop with 4 lines. Then when I really looked the bottom line was horizontal / 0 slope. So I put whatever was second from top. Hope it was B!

Describe the bootstrapping method and its advantage over Monte Carlo simulation. Bootstrapping is related to simulation, but with one crucial difference: with simulation, the data are constructed completely artificially whereas bootstrapping is used to obtain a description of the properties of...

I remember putting bootstrapping for the answer. Others didn't make sense to me, can't remember the question though.

I went through the exam and was able to mark 81 where I felt comfortable it was my final answer. Then I went back through and got to 90+. Second round I found an answer I was comfortable with, it was just not coming to me at first. I probably had a straight up guess on about 5~, educated...

Cool, thanks David. This makes it more clear in my head. Especially the part about deferring the cash flow when we are paying and wanting it immediately when on the receiving end!

Hi @Flashback That's where my confusion lies! So if you look at the practice problem I posted above, the American put does not discount K. So, wouldn't that imply the American call does not discount K as well? Just can't find it in the GARP books or my BT notes to confirm one way or another...

So, if the lower bound of an American put is: P >= K - S(0) Does this mean the lower bound of an American call is: C >= S(0) - K ?

Thought I would add to this thread, as I don't see anything on American lower bounds. Question 180.5 also quizzes the American lower bound and I applied the Euro calculation and got it wrong. Let me provide some screenshots to detail my confusion. Notes I have don't provide lower bound on...

Agree!

Nice, I might be catching on! :)