Is that the fourth option? Or no such thing as basis risk and counterparty credit risk. I recall seeing counterparty credit risk once. My memory must have failed me....
Hi @drewmanfsu, I remember there's a question on hedging and asking us to identify the risks. I can't remember all the options clearly. There was one on basis risk and counterparty credit risk, lending risk and market risk, funding risk and market risk and...... Wonder what is the right answer.
I'm not sure if anybody remembers this but there's a question similar to the above topic on left heavier tail and asking us to choose the right answer in terms of pricing. 2 options out of 4 are on the ATM price being either higher or lower than the OTM call option I think.
Honestly, I can't remember the exact question on the "jump" nor the options given.
But there was a question on which one will have a higher price than OTM Call something to that effect....
For the hurdle rate question, did anybody get 10.2%? (I'm trying to recall with whatever memory that's left). If you use the hurdle rate formula, did you get that answer?
There's one question where you have to choose 2 types of risks from choices of lending risk, counterparty risk, market risk, basis risk. I wonder what would the right answer be.
Does anybody know the answer for the calculation on securitization overcollsteralisation? How much to Equity Tranche and how much to the overcollateralisation? I think there’s a cap on overcollateralisation.
Yea, I remember the ones you mentioned above. There's a question on IFRS9 which I thought was straightforward - the recognition of accrual interest on NPL loans and the difference in treatment between IASB and FASB. There's another tricky one from AML/ CFT. I was torn between 2 options - I think...
Thanks for your response. Yea not sure how that machine works. Hopefully I did circle D too but can’t recall at this point. Just gotta wait and see. Hope for the best!
Hi,
I have a question. I circled an answer say “A” and then I realized it should be “C” so instead of circling “C” as well, I just put “C” under Final Answer. Will it be marked as “C” or “A”?
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