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Hi All, P2.T6.R43 I am trying to conceptually understand how the DD value is calculated statistically. The numerator is the expected value of the price, and the denominator is the standard deviation. My question relates to the numerator. Assume T-t=1 ln(Vo/K) is the current log "return" at...

Hi All, When I look at the BSM with dividends formulas in the study notes, I find something that is inconsistent with when I do the problems. Specifically the part that trips me up is in the calculation of d1, we take ln(So/K), which when I was studying seemed to be specifically the current...

Hi All, 27.1. Dowd defines an arithmetic, absolute value at risk (VaR) given by VaR(%) = -drift + volatility*deviate. For a portfolio with current value of $1.0 million, expected return of 15.0% and volatility of 40% per annum, which of the following is nearest to the 99.0% confident 20-day...

Hi All, The following is the question: 203.2. The cash prices of six-month and one-year Treasury bills are $99.00 and $98.00, respectively. An eighteen month (1.5 year) bond that will pay $1.00 coupon every six months (i.e., coupon rate of 2.0% per annum payable semi-annually) currently sells...

Hi all, Is there any way to speed up the video to 1.5x or 2x speed? This is usually how I like to watch training videos but I don't see any option for that on the videos.