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I passed L2 as well.. So happy!! results are 21223

Sorry guys, in the official reading there is no explanation of how OTM put WWR may become much bigger than ITM put. I think there might be the case regarding the option premium that increases WWR as well. This is the case of CRASHAFOBIA, where investors expects large drop in the specific...

definitely ITM put on oil producer much more logical! Perhaps, in some cases OTM put options might have higher WWR than ITM put. Also, there is a brief note regarding this issue in the scheweser notes. Generelly, ITM put represent WWR as opposed to OTM put.

Hi, Regarding the variance and volatility swap concept, just follow the exotic options topics, at the end of the chapter, it has been explained.

Passed with 2 2 1 2 quartiles... thanks David!

Coefficient of variation is unitless! there were different units of measurement.... but one option was with square of the unit (%^2), that is was my option. all other were without square.

there was a question that asked which of the following is the unit of measurement of variance. :)) what was your options? In fact it was easy so much...

I also don't remember the other options except for libor quotes in different currencies. Yes, one of the options was indicated statement regarding the OIS and Libor, but I'm not sure that option indicates precisely the proxy advantage of OIS over the Libor. Even it would be incorrect statement.

The question in respect to BSM assumption was unlikely.. But for the CAPM assumtion, there was something..

Yes, I also saw such arguments in J.Hull chapters. In fact, these two choices were confusing! I'm not confident that I have marked the answer in respect to Libor quotation in major currencies. But more likely, I think I have marked the final one. Regarding the proxy advantage of overnight swap...

In addition to above comments, please also note that in april of current year, British Bankers Association made a number of amendments in regard to quotation of LIBOR. So as per amendment implied, now British Banker Association quoting only in 5 currencies and 7 maturities instead of 10...

Originally (in 1986) LIBOR was published for 3 currencies: the US dollar, the pound sterling and the Japanese yen. Over the years that followed the number of LIBOR currencies grew to a maximum of 16. A number of these currencies merged into the euro in 2000. At the moment we have LIBOR rates in...

I have tagged the final option which stated that "Libor quotes in five major currecies". Other alternatives I didnt really remember. At that time, I considered this option to be true.

Which of the following is the feature of LIBOR

If I'm not wrong question asked that in order to prevent further loss which one of the following order is most appropriate for the investor.:rolleyes:

Stop loss order also allow to investor to close his position at the the certain threshold reached. let say if market index falls by 10% on stock index futures, then as per stop loss order given, the broker will initiate this order immediately. Basically, the purpose is to prevent further loss on...

I remain on my point based on the fact that with 95 % confidence level, alternative hypothesis require two tailed test regardless of the table given or not. 95% CL, two tailed test requires to use upward and downward limits as Alfa/2 That is 0.025 (5%/2). you must find critical values from...

Additionally, it seems illogical on one hand terms require to conduct two tailed test and on the other hand, it provides only 0.05 significance level.:confused:

at first attempt, I puzzled and calculated it based on one tailed. But then I figure out that the terms require us to conduct two tailed test and finally had a look below given table. and then the option appropriate for the result has been chosen. However, analysis is my personal view.

Table was given below answers. t stat with 95% confidence level, 0.05 and 0.025 significance level and their respective critical values has been provided! Only thing is to define whether alternative hypothesis is one tailed or two-tailed. As per terms of the question, null hypothesis argued...