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Are we allowed to use the FRM designation now after submitting the CV with >2yrs experience? If I read the e-mail correctly I'd say yes: "Once you have met all of our requirements for certification as a Financial Risk Manager, you are encouraged to use the FRM designation on all of your...

Sorry, I don't agree on CAIA discussion. I have done both CAIA and FRM (and I have done some teaching for CFA) and in my experience CAIA level II was much harder to pass than FRM, and it had even much more depth/breadth than FRM in my opinion. CAIA level I was quite easy though. In regard to...

Now we can see the quartile scores in each five categories on GARP's website. I was all five times in the top :)

The exam was not so difficult, but we had way too few time to solve every question. I ended up guessing more than 10 questions in session 1 because there was less than 5 minutes left. Some questions took me more than 5 minutes to solve, others even more than 10 minutes. To me this exam was...

Very disappointing..., but I will try to e-mail or talk to you privately after my exam.

Slide 72 of episode 10 states that DB does model dependencies among frequency distributions. Yet, you say in screencast during that slide twice that DB does not model dependencies. Is it typo? If not a typo, does DB model dependencies of frequencies only within cells? In that case, a...

Ok. It's not a matter of criteria, the thing is that they look alike, but are in fact not the same. I guess that in this case we only need to learn the ones on slide 55.

Sure, but in this case we were solving for the VaR, not the UL, right?

On slide 66 of Episode 10 you subtract the expected loss when calculating the VaR. Could you explain why? In my view not subtracting the mean would give a more pure VaR. If anything, I would understand adding the expected loss instead of subtracting it...

On slide 35 you write that "Monte Carlo simulation can fill in the gap", but how can we run a MC simulation without a model? That is the essence behind MC in my opinion.

Do slide 55 and 20 represent basically the same? It looks a bit confusing I must say. Why did you show us slide 20 if later on we use other names and definitions?

David, On slide 18 of Episode 10 you don't explain what EI is in the formula: EL=EIxPExLGE. Please help me out

Thanks. Great answer. This helps me putting things in perspective.

What are the arguments for a firm to move assets off the balance sheet? And what are the advantages and disadvantages?

But delta is dP/dS, not dV/dS, so proof is still wrong???

Very clear, David! One thing remains unclear. You write: "Not this: price[forward] = Spot - [Delivery]*EXP[(-r)(T)] But rather: VALUE[forward] = Spot - [Delivery]*EXP[(-r)(T)] " So that means your "proof" under point 1 in your first answer was wrong. Right? If so, is there a...

Thanks for the effort, but I am still confused. I worry about the difference because I feel I'm losing grip understanding the basics. Please follow my train of thoughts: delta = d price / d S price for both is (in Hull and in your notes): price = S*EXP[(r)(T)] So both have delta...

ad 1. But in the notes you write that the formula for forwards is the same as futures: price = Spot*EXP[(r)(T)] This is really confusing.

Why is it that the delta of a forward is1, and the delta of a future is exp(rT)?

Thanks David, Your answer is exactly what I was looking for: the missing link. Much clearer now!