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Hi David, Trust you are doing great. I am confused in regard to the impact of roll return in contango / backwardation and basis strengthening or weakening in case of short or long hedge. Please correct me as I think I am missing something here. In case of unexpected strengthening of basis- cash...

Hi Team BT, Request help with this question. A non-dividend-paying stock is currently trading at USD 40 and has an expected return of 12% per year. Using the Black-Scholes-Merton (BSM) model, a 1-year, European-style call option on the stock is valued at USD 1.78. The parameters used in the...

Hi Team BT, As per my understanding the formula for calculating SE is : Sample SD/SQRT(Sample size). However in some cases the formula used to calculate SE is SQRT(Sample SD/N) in BT study notes. This way of calculating will generate a different value of SE. Hence request to clarify on the...

Hi Team BT, Have gone through the video on Exotic options but couldn't find the study notes for the same. Will it be uploaded in the study planner?

Hi David, While going through the video under Valuation and Risk model for the topic in chapter 5 and 6 in Tuckman, you mention about low relevance in the inception. My questions are: Does these two chapter i.e. 5 and 6 still have low relevance for the FRM Part 1 exam scheduled in May 16 2015...