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Hi @Mezzala95 , David's post i.e. https://www.bionicturtle.com/a-note-about-delta-gamma-value-at-risk-var-as-taylor-series/ explains it really well. If I recall, it is actually the opposite? Long call/put lowers VaR vice versa for the short option position.

Hi @mbbx5va2, I see... again, why don't you try signing up for the exam and see if it allows you without membership? I think most likely you will have to pay the membership fee.

Hi @mbbx5va2 , If I recall correctly, when you sign up for the exam, GARP automatically signs you up for the membership as part of the package (with additional fee of course; not sure if it is $195). I think you can just go with the exam registration.

@sulemanms202 , At home, I have two screens, one from my laptop and another desktop. I open the BT question set on one screen and Microsoft Word on another to write my answers. Actually, for the BT exams, it is online simulation, which should proxy the real exam situation. Do not download it...

Hi @sulemanms202 , I don't think you can ever replicate the exact situation of the FRM, but taking the exams by BT and timing yourself (4hrs) seems to be good enough of a exam simulation. That worked for me at least.

Dear @kchristo , Towards the end of my exam preparation I focused purely on topic question sets (the summary for each topic) and exam sets (always timed). It is more important at this stage to get used to the questions and the exam environment. I personally would not read the notes and watch...

Hi @noname12 , Do you want to screenshot the problem exercise here? It makes it alot easier for the forum members to answer your questions instead of having to go digging for the notes.

Hi @lynnding2016 , Can you provide some context? There could be alot of reasons for this. My understanding from a macro perspective is that when interest rates increases, it is a sign of the central bank trying to control inflation. Healthy inflation is usually a sign of a good economy that...

Hi @warren_munger , Do you mean marks? I think you can just work on the sections you got 2 and 3 in.

Hi @The Legal Eagle , I work in risk management and have completed the FRM part I. Actually, I think it is pretty hard to find someone on this forum who can give you reliable advice because nobody here is a lawyer. I don't know what a day in the life of a lawyer is like but I can tell you what...

@wcmug @sagarshah1203 , Do you want to paste a screenshot of the questions here? It would be easier for us to answer instead of having to go digging for the notes/QnA.

Hi @Alberto , Just to chip in here, I think a long put and stock is actually a long call / protective put: Such that when the stock price decreases there is actually a (mini) loss. Hope this is helpful!

Hi @DenisAmbrosov , You really need to provide more context to your questions. Fortunately, I know you are referencing Chapter 15 of OFD by Hull. A simple way to understand it is that multiplicative or divisive terms that affect the represented variable, in this case x (which is also...

Hi @nadachahade , Can you be more specific with your questions and not double post? I am keen on helping anyone with their questions but I don't even understand what you are asking. Instead of posting PDFs it would be good to just screenshot and paste the questions on the comments so I can view...

@Chanspace , 100%. Even those who didn't do risk management (in finance) get approved; risk management outside of finance works as well. I think @Nicole Seaman gave a super helpful post once but I can't seem to remember the thread.

Hi @Mezzala95 , Not sure if you've noticed, but you are actually quoting the famous Black-Scholes equation (not formula, the PDE) in your Theta-Delta-Gamma equation. I don't see a Vega in your equation and it isn't the variance, Vega refers to a certain quantity change in option price/premium...

Hi @waptrick, I'm not sure what you mean by "what rate to lock in". This is because, from what I understand about the question, after one year, the 0.5 and 1.0 year coupons have paid out and the bond itself is also worth different as the discount curve has changed. So this holding period...

Hi @waptrick , For the 0.5 year spot rate, 99.5 = 100 / (1+r_0.5)^0.5 The 0.5 year spot rate r_0.5 is annualised. 99 = (0.875/2) / (1+r_0.5)^0.5 + (100 + 0.875/2) / (1+r_1) The 1.0 year spot rate r_1 is annualised. You can repeat for the rest of the period rates. The process I just showed...

Hi @AbhishekJha , Question 1 : How does owning the crop or any commodity imply that Farmer has a Long Position by default? I understand in the example given with the definition, farmer will owm a Crop and hence he would like to hedge the Price in future which explains why he would like to get...

Hi @Mezzala95 , For me, I went through all the BT videos (and read through the BT notes for clarification on things I didn't understand; but mostly did not look at them much). I spent more time on questions, reading/understanding/participating on the forum. When it came close to the exam, I...