Pretty sure it was a short call , can anyone remember?
Exam Feedback November 2019 Part 1 Exam Feedback
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The Order was cancelled right after it didnt get through, so it is not a limit order right? Thats why i put fill or kill
Yes. I marked the same too, that is, "Fill or Kill".
Moreover, I'm pretty sure that the other question was pertaining to "short call' only....
There was one question on ERM. Anyone remembers if the answer was like "Different business/bank/firm units are allocated budget as per their respective exposures/risk levels...?
Maggie3344
New Member
I have the same answer
Thats also what i marked, allocate Budget to business lines based on their risk..
Sixcarbs
Active Member
Did you have a red exam book or a blue exam book? I had a red one, and I think it was put.
Sixcarbs
Active Member
I don't remember it being cancelled, just remember it not being filled. It was placed the day before, after the close.
A Fill or Kill wouldn't need to be cancelled, it is just filled or killed (Cancelled) automatically.
This is one of the few parts of the exam where I have professional experience. I spent many years working on the trading floor, and I am sure that question described a limit order.
A blue one
and the market order was cancelled automatically for sure, so maybe it what because my one was bluealicebjarni
New Member
Calculate the delta of the short call position
yes, I too remember it being delta of the short call position
I can see questions are not the same for blue and red book.
for me (blue) it was asked for:
A short call delta
Type of an automatically cancelled order
I also remember a question with AIC/SIC/MSE and my answer was MSE is inconsistent
Last, I don’t understand why I could’nt get close to a proposed answer for the bonus deffered question! This one is just calculate the PV!
for me (blue) it was asked for:
A short call delta
Type of an automatically cancelled order
I also remember a question with AIC/SIC/MSE and my answer was MSE is inconsistent
Last, I don’t understand why I could’nt get close to a proposed answer for the bonus deffered question! This one is just calculate the PV!
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Yes, the answer should be 32
JamesVU2000
Member
law of one price was near the end. I also couldnt believe they put in a put call arbitrage question. I had no idea how to solve it.
I Think it was buying tue put and Stock, selling the call and borrowing to finance the putchase at the Risk free rate as s+p < c + PV(K)
this is correct
I agree with your assessment. The main issue for me was also time, There were way too many questions that require multiple steps calculation to derive the answer especially those Swaps. I had to guess on several questions that I could have solved if I had more time. Also felt the first 50 to 60 questions were OK but the last 40 or so came out of nowhere. what do you guys think would qualify for a passing score given the level of difficulty?
The answer to the options trading strategy should be "straddle", right?
I found the exam lengthy as well. I had to cut short/guess on a good number of questions. Even the answers were not matching in a few, like in the question pertaining to the option pricing using the Black-Scholes model...I wasted a good amount of time on them..sigh!
I found the exam lengthy as well. I had to cut short/guess on a good number of questions. Even the answers were not matching in a few, like in the question pertaining to the option pricing using the Black-Scholes model...I wasted a good amount of time on them..sigh!
I did not have straddle as answer. I had strangle (blue book).
Sixcarbs
Active Member
I had a red book and I think I answered strangle to a question.
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