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In the first place the candidate without the calculator is in itself a sign of un preparedness. Even if you gave the calculator for argument sake, I can bet for sure that the candidate would not have passed the exam.

Hi David, I am writing to you this note, to thank you for the wonderful prep questions and notes. The exam was simply as predicted. The numerical problems were replicas from your practice questions. This is due to the indepth knowledge and effort that you have put in to frame these...

Could please elaborate more on the actuarial opportunities that you mentioned - 1) Course details 2) Exam details 3) Prep Providers 4) Most reputed exam authority. Thanks Bhar

What about the Amaranth episode and its bet on the oil markets ?

CFA is good go for it.

Hi David, Suzanne Yes, I agree too. Mocks are better way to work towards the final day. Thanks

This is very helpful. Is it possible to publish a similar topics wise list for the other 3 topics as well in Part 1 or direct me to the location for the questions on the other 3 parts.

The solution to this comes to 4.2 while in the choices the answer has only 4. How does GARP actually justify this large differences in actual answers vs choices provided ?

Should the time be .25 instead of .125 as you have taken. Please ignore. Shot it out too fast. It was solved as 45/360 or .25/2 Thanks

Thanks David. Very helpful.

Thanks a lot. That helps. Though a longish one, It helps understanding the concepts.

I solved it this way. 40*(1.2)^2 = 57.6 - 37 = 20.6 20.6 * (0.67^2) * e^(-0.08*.25) = 9.064

What is the value of a 2 step EUR call option? st = 40; rf = 8%; 2 step eur call; k=37; proportion of up move = 1.2; probablity of up move = .67; t = 3 months

Hi On Page 29, Index futures contract - example to reduce the beta from 1.5 to 1.2, the answer should be 9.67 contracts and not 97 contracts. Could you please clarify. The problem details are - Current Beta - 1.5 Target Beta - 1.2 Present Portoflio Value = 10m Index contract price , 1 contract...

Where are you located, Alex ?

Ok great. The additional thread has clarified some more doubts. Thanks David.

Thanks David. That helps a lot.

Hi Current Position - Long Call; Position Delta +ve; Delta Neutralising trx - short stock Current Position - Short Call; Position delta -ve; Delta Neutralising trx - Long stock Current Position - Long Put; Position Delta -ve; Delta Neutralising trx - Long stock Current Position - Short Put...

Hi I came across this assignment problem in Hull. I tried to solve it but would like to get a correct answer to this problem. Could you please help. I have ignored the vega neutralising requirement from the original question as it is low testability. The answer I got - Gamma Neutralising trade...

Hi In the mock Exam question number - 10 - the solution for R^2 is mentioned as True: Beta(P w.r.t. B) = correlation*vol(P)/vol(B), such that correlation = beta(P,B)*vol(B)/vol(P) and R^2 = Beta^2*vol(B)^2/vol(P)^2. In this case, R^2 = 0.8650*1.4090%^2/1.3240%^2 = 0.8474 In the substitution...