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Hi David, for practice exam Q64, would the exam specify the shape of the smile? (e.g. heavy lift tail, lighter right tail). Or are we suppose to know the shape? if yes, could you please advise what's the correct shape of the volatility smile for each type of options? thank you! 64. A committee...

Pillar 3 required banks to disclose: A list of instrument comprising the bank's Tier 1 capital, just wondering, what other instrument is in Tire 1 capital, other than common stock and perferred stock.

the price of a four year zero coupon bond is 86, the price of a similar five year bond is 79.51. if we assume all rates are expressed er annum with semi-annual counpounding, which is nearest to the one-year implied forward rate from year four to year five. d) 8% the d(4) = 86/100, d(5) =...