Today's Daily Questions

David writes totally fresh, totally original practice (quiz) questions every week: a fresh set of three (4) from Mon to Thursday = 12 new practice questions per week. A few hungry customers like to follow along, so we post them here.

Paid members please note: you do not need to collect practice questions one at a time! After a chapter (or section of related chapters) is finished, Nicole collects them into a single PDF file and uploads to the Study Planner. Most paid members will want to go straight to the study planner (unless you want to discuss/etc in the forum). Thank you!

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  1. Nicole Seaman

    P2.T5.709. Coherent risk measures (Dowd, Ch.3)

    Learning objectives: Define coherent risk measures. Estimate risk measures by estimating quantiles. Evaluate estimators of risk measures by estimating their standard errors. Interpret QQ plots to identify the characteristics of a distribution. Questions: 709.1. Sally is a Risk Analyst who wants to estimate the 95.0% expected shortfall (ES) but finds it much easier to retrieve the extreme...
    Learning objectives: Define coherent risk measures. Estimate risk measures by estimating quantiles. Evaluate estimators of risk measures by estimating their standard errors. Interpret QQ plots to identify the characteristics of a distribution. Questions: 709.1. Sally is a Risk Analyst who wants to estimate the 95.0% expected shortfall (ES) but finds it much easier to retrieve the extreme...
    Learning objectives: Define coherent risk measures. Estimate risk measures by estimating quantiles. Evaluate estimators of risk measures by estimating their standard errors. Interpret QQ plots to identify the characteristics of a distribution. Questions: 709.1. Sally is a Risk Analyst who...
    Learning objectives: Define coherent risk measures. Estimate risk measures by estimating quantiles. Evaluate estimators of risk measures by estimating their standard errors. Interpret QQ plots to...
    Replies:
    0
    Views:
    165
  2. Nicole Seaman

    P1.T2.710. Mean and standard deviation (Miller, Ch.3)

    Learning objectives: Interpret and apply the mean, standard deviation, and variance of a random variable. Calculate the mean, standard deviation, and variance of a discrete random variable. Interpret and calculate the expected value of a discrete random variable. Questions: 710.1. The following probability matrix contains the joint probabilities for random variables X = {2, 7, or 12} and Y =...
    Learning objectives: Interpret and apply the mean, standard deviation, and variance of a random variable. Calculate the mean, standard deviation, and variance of a discrete random variable. Interpret and calculate the expected value of a discrete random variable. Questions: 710.1. The following probability matrix contains the joint probabilities for random variables X = {2, 7, or 12} and Y =...
    Learning objectives: Interpret and apply the mean, standard deviation, and variance of a random variable. Calculate the mean, standard deviation, and variance of a discrete random variable. Interpret and calculate the expected value of a discrete random variable. Questions: 710.1. The...
    Learning objectives: Interpret and apply the mean, standard deviation, and variance of a random variable. Calculate the mean, standard deviation, and variance of a discrete random variable....
    Replies:
    0
    Views:
    133
  3. Nicole Seaman

    P2.T5.708. Expected shortfall (Dowd Chapter 3)

    Learning objective: Estimate the expected shortfall given P/L or return data. Questions: 708.1. A hedge fund's daily P/L for the last 300 trading days is plotted below in a histogram where the bin width is $0.20. Additionally, the worst 20 daily losses are sorted explicitly below the histogram: Which is nearest to the 99.0% expected shortfall (ES)? a. 0.920 b. 0.950 c. 1.100 d....
    Learning objective: Estimate the expected shortfall given P/L or return data. Questions: 708.1. A hedge fund's daily P/L for the last 300 trading days is plotted below in a histogram where the bin width is $0.20. Additionally, the worst 20 daily losses are sorted explicitly below the histogram: Which is nearest to the 99.0% expected shortfall (ES)? a. 0.920 b. 0.950 c. 1.100 d....
    Learning objective: Estimate the expected shortfall given P/L or return data. Questions: 708.1. A hedge fund's daily P/L for the last 300 trading days is plotted below in a histogram where the bin width is $0.20. Additionally, the worst 20 daily losses are sorted explicitly below the...
    Learning objective: Estimate the expected shortfall given P/L or return data. Questions: 708.1. A hedge fund's daily P/L for the last 300 trading days is plotted below in a histogram where the...
    Replies:
    0
    Views:
    239
  4. Nicole Seaman

    P1.T2.709. Joint probability matrices (Miller Ch.2)

    Learning objectives: Distinguish between independent and mutually exclusive events. Define joint probability, describe a probability matrix, and calculate joint probabilities using probability matrices. Define and calculate a conditional probability, and distinguish between conditional and unconditional probabilities. Questions: 709.1. The following probability matrix gives the joint...
    Learning objectives: Distinguish between independent and mutually exclusive events. Define joint probability, describe a probability matrix, and calculate joint probabilities using probability matrices. Define and calculate a conditional probability, and distinguish between conditional and unconditional probabilities. Questions: 709.1. The following probability matrix gives the joint...
    Learning objectives: Distinguish between independent and mutually exclusive events. Define joint probability, describe a probability matrix, and calculate joint probabilities using probability matrices. Define and calculate a conditional probability, and distinguish between conditional and...
    Learning objectives: Distinguish between independent and mutually exclusive events. Define joint probability, describe a probability matrix, and calculate joint probabilities using probability...
    Replies:
    0
    Views:
    204
  5. Nicole Seaman

    P2.T5.707. Historical simulation and lognormal value at risk (VaR) (Dowd)

    Learning objectives: Estimate VaR using a historical simulation approach. Estimate VaR using a parametric approach for both normal and lognormal return distributions. Questions: 707.1. A mutual fund's daily returns for the last 300 trading days is plotted on this histogram. Additionally, the worst 20 daily returns are sorted explicitly below the histogram: Under the basic historical...
    Learning objectives: Estimate VaR using a historical simulation approach. Estimate VaR using a parametric approach for both normal and lognormal return distributions. Questions: 707.1. A mutual fund's daily returns for the last 300 trading days is plotted on this histogram. Additionally, the worst 20 daily returns are sorted explicitly below the histogram: Under the basic historical...
    Learning objectives: Estimate VaR using a historical simulation approach. Estimate VaR using a parametric approach for both normal and lognormal return distributions. Questions: 707.1. A mutual fund's daily returns for the last 300 trading days is plotted on this histogram. Additionally, the...
    Learning objectives: Estimate VaR using a historical simulation approach. Estimate VaR using a parametric approach for both normal and lognormal return distributions. Questions: 707.1. A mutual...
    Replies:
    0
    Views:
    237
  6. Nicole Seaman

    P1.T2.708. Probability function fundamentals (Miller Ch. 2)

    Learning objectives: Describe and distinguish between continuous and discrete random variables. Define and distinguish between the probability density function, the cumulative distribution function, and the inverse cumulative distribution function. Calculate the probability of an event given a discrete probability function. Questions: 708.1. Let f(x) represent a probability function (which...
    Learning objectives: Describe and distinguish between continuous and discrete random variables. Define and distinguish between the probability density function, the cumulative distribution function, and the inverse cumulative distribution function. Calculate the probability of an event given a discrete probability function. Questions: 708.1. Let f(x) represent a probability function (which...
    Learning objectives: Describe and distinguish between continuous and discrete random variables. Define and distinguish between the probability density function, the cumulative distribution function, and the inverse cumulative distribution function. Calculate the probability of an event given a...
    Learning objectives: Describe and distinguish between continuous and discrete random variables. Define and distinguish between the probability density function, the cumulative distribution...
    Replies:
    0
    Views:
    157
  7. Nicole Seaman

    P2.T8.712. Hedge fund performance

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    117
  8. Nicole Seaman
    Replies:
    1
    Views:
    693
  9. Nicole Seaman

    P1.T3.732. Exchange option, volatility swap, and static option replication (Hull Ch. 26 continued)

    Identify and describe the characteristics and pay-off structure of the following exotic options: exchange. Describe and contrast volatility and variance swaps. Explain the basic premise of static option replication and how it can be applied to hedging exotic options. Questions: 732.1. Consider a one-year exchange option to give up 14.0 units of Ethereum (aka, ether or ETH) for one unit of...
    Identify and describe the characteristics and pay-off structure of the following exotic options: exchange. Describe and contrast volatility and variance swaps. Explain the basic premise of static option replication and how it can be applied to hedging exotic options. Questions: 732.1. Consider a one-year exchange option to give up 14.0 units of Ethereum (aka, ether or ETH) for one unit of...
    Identify and describe the characteristics and pay-off structure of the following exotic options: exchange. Describe and contrast volatility and variance swaps. Explain the basic premise of static option replication and how it can be applied to hedging exotic options. Questions: 732.1. Consider...
    Identify and describe the characteristics and pay-off structure of the following exotic options: exchange. Describe and contrast volatility and variance swaps. Explain the basic premise of static...
    Replies:
    0
    Views:
    173
  10. Nicole Seaman

    P2.T8.711. Time- versus dollar-weighted returns, M-squared measure, and performance attribution

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    151
  11. Nicole Seaman

    P1.T3.731. Lookback and Asian (exotic) options (Hull Chapter 26 cont.)

    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 731.1. Consider the price of an asset that begins and $30.00 and ends, after 20 periods, lower at $8.55. Also highlighted are its maximum ($39.23) and...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 731.1. Consider the price of an asset that begins and $30.00 and ends, after 20 periods, lower at $8.55. Also highlighted are its maximum ($39.23) and...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 731.1. Consider the price of an asset that begins and...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout,...
    Replies:
    0
    Views:
    152
  12. Nicole Seaman

    P2.T8.710. Portfolio value at risk (VaR) and surplus at risk (SaR)

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    254
  13. Nicole Seaman

    P1.T3.730. Chooser and barrier (exotic) options (Chapter 26 cont.)

    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 730.1 A non-dividend paying stock is currently trading at a price $35.00 when its volatility is 30.0% and the riskfree rate is 3.0%. Consider a chooser...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 730.1 A non-dividend paying stock is currently trading at a price $35.00 when its volatility is 30.0% and the riskfree rate is 3.0%. Consider a chooser...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 730.1 A non-dividend paying stock is currently...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout,...
    Replies:
    0
    Views:
    198
  14. Nicole Seaman

    P2.T8.709. Ang on Factors and Factor Theory

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    155
  15. Nicole Seaman

    P1.T3.729. Gap, forward start and compound exotic options (Hull, Chapter 26)

    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 729.1 Consider an asset with a current price of $120.00 and volatility of 16.0% while the risk-free rate is 3.0%. A regular (aka, vanilla) but deeply...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 729.1 Consider an asset with a current price of $120.00 and volatility of 16.0% while the risk-free rate is 3.0%. A regular (aka, vanilla) but deeply...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 729.1 Consider an asset with a current price of...
    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout,...
    Replies:
    0
    Views:
    178
  16. Nicole Seaman

    P2.T7.707. Leverage, liquidity risk, and liquidity-adjusted value at risk (LVaR)

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    241
  17. Nicole Seaman

    P1.T3.728. Option combination strategies (Hull Chapter 12)

    Learning objectives: Describe the use and explain the payoff functions of combination strategies. Questions: 728.1. The risk-free rate is 3.0% and the the stock price of Discovery Communications (ticker: DISCK) is $20.00. Peter purchases a straddle with six-month European at-the-money options; ie.., S = K = $20.00. If the price of a call option is $2.05, then how much will the stock price...
    Learning objectives: Describe the use and explain the payoff functions of combination strategies. Questions: 728.1. The risk-free rate is 3.0% and the the stock price of Discovery Communications (ticker: DISCK) is $20.00. Peter purchases a straddle with six-month European at-the-money options; ie.., S = K = $20.00. If the price of a call option is $2.05, then how much will the stock price...
    Learning objectives: Describe the use and explain the payoff functions of combination strategies. Questions: 728.1. The risk-free rate is 3.0% and the the stock price of Discovery Communications (ticker: DISCK) is $20.00. Peter purchases a straddle with six-month European at-the-money options;...
    Learning objectives: Describe the use and explain the payoff functions of combination strategies. Questions: 728.1. The risk-free rate is 3.0% and the the stock price of Discovery Communications...
    Replies:
    0
    Views:
    161
  18. Nicole Seaman

    P2.T6.416. Credit default swaps (CDS) and credit spread curve

    Thank you @slacknoise This was a few years ago, I maybe did not think to refer to Choudhry (who I since uploaded here at ) and notice below what he says on page 70. Of course, the definition of the CDS-bond basis matters. I assume Gregory defines it like Choudhry: CDS-bond basis = CDS spread - [cash bond spread]; aka, CDS spread - [asset-swap spread]. That's every definition I've ever read,...
    Thank you @slacknoise This was a few years ago, I maybe did not think to refer to Choudhry (who I since uploaded here at ) and notice below what he says on page 70. Of course, the definition of the CDS-bond basis matters. I assume Gregory defines it like Choudhry: CDS-bond basis = CDS spread - [cash bond spread]; aka, CDS spread - [asset-swap spread]. That's every definition I've ever read,...
    Thank you @slacknoise This was a few years ago, I maybe did not think to refer to Choudhry (who I since uploaded here at ) and notice below what he says on page 70. Of course, the definition of the CDS-bond basis matters. I assume Gregory defines it like Choudhry: CDS-bond basis = CDS spread -...
    Thank you @slacknoise This was a few years ago, I maybe did not think to refer to Choudhry (who I since uploaded here at ) and notice below what he says on page 70. Of course, the definition of...
    Replies:
    5
    Views:
    1,831
  19. Nicole Seaman

    P2.T7.706. Economic capital

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    173
  20. Nicole Seaman

    P1.T3.727. Option spread strategies (Hull Chapter 12)

    Learning objectives: Explain the motivation to initiate a covered call or a protective put strategy. Describe the use and calculate the payoffs of various spread strategies. Questions: 727.1. Assume the current price of a stock is $30.00 and imagine that we can only trade the following four options at two strike prices: At a strike price of $28.00, we can employ either a call or a put,...
    Learning objectives: Explain the motivation to initiate a covered call or a protective put strategy. Describe the use and calculate the payoffs of various spread strategies. Questions: 727.1. Assume the current price of a stock is $30.00 and imagine that we can only trade the following four options at two strike prices: At a strike price of $28.00, we can employ either a call or a put,...
    Learning objectives: Explain the motivation to initiate a covered call or a protective put strategy. Describe the use and calculate the payoffs of various spread strategies. Questions: 727.1. Assume the current price of a stock is $30.00 and imagine that we can only trade the following four...
    Learning objectives: Explain the motivation to initiate a covered call or a protective put strategy. Describe the use and calculate the payoffs of various spread strategies. Questions: 727.1....
    Replies:
    0
    Views:
    216
  21. Nicole Seaman

    P1.T7.705. Extreme value theory (EVT)

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    148
  22. Nicole Seaman

    P1.T3.726. More properties of stock options, including put-call parity (Hull Ch 11 cont)

    Learning objectives: Explain put-call parity and apply it to the valuation of European and American stock options. Explain the early exercise features of American call and put options. Questions: 726.1. The price of a dividend-paying stock is $44.00 while the riskfree rate is 3.0%. Consider a European call option and a European put option with identical strike prices, K = $40.00, and...
    Learning objectives: Explain put-call parity and apply it to the valuation of European and American stock options. Explain the early exercise features of American call and put options. Questions: 726.1. The price of a dividend-paying stock is $44.00 while the riskfree rate is 3.0%. Consider a European call option and a European put option with identical strike prices, K = $40.00, and...
    Learning objectives: Explain put-call parity and apply it to the valuation of European and American stock options. Explain the early exercise features of American call and put options. Questions: 726.1. The price of a dividend-paying stock is $44.00 while the riskfree rate is 3.0%. Consider a...
    Learning objectives: Explain put-call parity and apply it to the valuation of European and American stock options. Explain the early exercise features of American call and put...
    Replies:
    0
    Views:
    149
  23. Nicole Seaman

    P2.T7.704. Loss distribution approach (LDA), external loss data, & Basel's Standardized Measurement

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    290
  24. Fran

    P1.T4.309. Discount factors and law of one price

    Thanks a ton @David Harper CFA FRM
    Thanks a ton @David Harper CFA FRM
    Thanks a ton @David Harper CFA FRM
    Thanks a ton @David Harper CFA FRM
    Replies:
    4
    Views:
    1,005
  25. Nicole Seaman

    P1.T3.725. Properties of stock options, including lower bounds (Hull Chapter 11)

    Learning objectives: Identify the six factors that affect an option’s price and describe how these six factors affect the price for both European and American options. Identify and compute upper and lower bounds for option prices on non-dividend and dividend paying stocks. Questions: 725.1. Consider a European call option on a non-dividend-paying stock that has a current price, c = $6.37, if...
    Learning objectives: Identify the six factors that affect an option’s price and describe how these six factors affect the price for both European and American options. Identify and compute upper and lower bounds for option prices on non-dividend and dividend paying stocks. Questions: 725.1. Consider a European call option on a non-dividend-paying stock that has a current price, c = $6.37, if...
    Learning objectives: Identify the six factors that affect an option’s price and describe how these six factors affect the price for both European and American options. Identify and compute upper and lower bounds for option prices on non-dividend and dividend paying stocks. Questions: 725.1....
    Learning objectives: Identify the six factors that affect an option’s price and describe how these six factors affect the price for both European and American options. Identify and compute upper...
    Replies:
    0
    Views:
    230
  26. Nicole Seaman

    P2.T7.703. Operational data governance practices

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    177
  27. Nicole Seaman

    P1.T3.724. Mechanics of options markets (Hull Chapter 10)

    Learning objectives: Describe the types, position variations, and typical underlying assets of options. Explain the specification of exchange-traded stock option contracts, including that of nonstandard products. Describe how trading, commissions, margin requirements, and exercise typically work for exchange-traded options. Questions: 724.1. A stock with a volatility of 31.0% is currently...
    Learning objectives: Describe the types, position variations, and typical underlying assets of options. Explain the specification of exchange-traded stock option contracts, including that of nonstandard products. Describe how trading, commissions, margin requirements, and exercise typically work for exchange-traded options. Questions: 724.1. A stock with a volatility of 31.0% is currently...
    Learning objectives: Describe the types, position variations, and typical underlying assets of options. Explain the specification of exchange-traded stock option contracts, including that of nonstandard products. Describe how trading, commissions, margin requirements, and exercise typically work...
    Learning objectives: Describe the types, position variations, and typical underlying assets of options. Explain the specification of exchange-traded stock option contracts, including that of...
    Replies:
    0
    Views:
    329
  28. Nicole Seaman

    P2.T7.702. Risk appetite framework (RAF), enterprise risk management (ERM) & Three Lines of Defense

    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an actual exam question. As these represent "easier than our usual" practice questions, they are...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier than bionicturtle.com's typical question such that the intended difficulty level is nearer to an...
    Concept: These on-line quiz questions are not specifically linked to learning objectives, but are instead based on recent sample questions. The difficulty level is a notch, or two notches, easier...
    Replies:
    0
    Views:
    248
  29. Nicole Seaman

    P1.T3.723. Swaps: valuation with OIS and LIBOR, comparative advantage, and currency swap valuation

    Learning objectives: Explain the mechanics of a currency swap and compute its cash flows. Explain how a currency swap can be used to transform an asset or liability and calculate the resulting cash flows. Calculate the value of a currency swap based on two simultaneous bond positions. Calculate the value of a currency swap based on a sequence of FRAs. Describe the credit risk exposure in a...
    Learning objectives: Explain the mechanics of a currency swap and compute its cash flows. Explain how a currency swap can be used to transform an asset or liability and calculate the resulting cash flows. Calculate the value of a currency swap based on two simultaneous bond positions. Calculate the value of a currency swap based on a sequence of FRAs. Describe the credit risk exposure in a...
    Learning objectives: Explain the mechanics of a currency swap and compute its cash flows. Explain how a currency swap can be used to transform an asset or liability and calculate the resulting cash flows. Calculate the value of a currency swap based on two simultaneous bond positions. Calculate...
    Learning objectives: Explain the mechanics of a currency swap and compute its cash flows. Explain how a currency swap can be used to transform an asset or liability and calculate the resulting...
    Replies:
    0
    Views:
    245
  30. Nicole Seaman

    P2.T7.701. Operational risk governance

    @Hermz29 Thank you for appreciating this question set! These operational risk review questions are tough (time-consuming) to write by the time I polish, cross-check and calibrate them, but there's always some fresh insights to mine from the material it seems :)
    @Hermz29 Thank you for appreciating this question set! These operational risk review questions are tough (time-consuming) to write by the time I polish, cross-check and calibrate them, but there's always some fresh insights to mine from the material it seems :)
    @Hermz29 Thank you for appreciating this question set! These operational risk review questions are tough (time-consuming) to write by the time I polish, cross-check and calibrate them, but there's always some fresh insights to mine from the material it seems :)
    @Hermz29 Thank you for appreciating this question set! These operational risk review questions are tough (time-consuming) to write by the time I polish, cross-check and calibrate them, but there's...
    Replies:
    6
    Views:
    397

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