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# Recent content by Deepak Chitnis

1. ### Happy Birthday David Harper!

Happy Birthday David Harper!

Hi @gargi.adhikari did you tried solving this, with converting dividend yield to continuous? I tried this and I got answer 1313.06521, I think difference is not that much, that's why they are not converted(my logic, @David Harper CFA FRM can elaborate more!). On actual exam I don't think there...
3. ### Happy Birthday David! Thank you for creating this forum and for such great study material

Happy Birthday David! Thank you for creating this forum and for such great study material
4. ### Out of the Office for Thanksgiving

Happy thanksgiving @David Harper CFA FRM and @Nicole Seaman. Enjoy your holiday:)!
5. ### GARP.FRM.PQ.P1 Interest rate parity (garp13-p1-6)

Hi @Angelinelyt you are assuming rate are continuously compounded, but rates are discrete compounding, read question carefully it says 4% rate per year, it means you should use formula Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate), so 1.25*(1.04/1.07)=1.21495 or round to...
6. ### GARP.FRM.PQ.P1 Interest rate parity (garp13-p1-6)

Hi @Angelinelyt Ft =S0 * e(r-rf)T should be used when rates are continuously compounded and, Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate) should be used when rates are discrete compounding (yearly, half yearly). Hope that helps you! Thank you:)!
7. ### GARP.FRM.PQ.P2 hazard rate (garp16-p2-33)

Hi @frmqiu it is conditional default probability it should be calculated as default in 2nd year - default in 1st year/survival in 1st year = 0.27385-0.14789/0.85214=0.14782. Hope that helps. Thank you:)!
8. ### PQ-external Hedging, Bonds & Yield Based Hedging

Answer of 3rd question should be C, because 44.9*1.0137=45.52 and 45.52-44.9=0.61513 or 0.62 simply means we have to sell additional 0.62 to hedge position completely. Hope I am right. Thank you￼:)!
9. ### Win prizes for forum participation!!

Thank you so much @Nicole Seaman please let it accrue. Thank you:)!
10. ### GARP.FRM.PQ.P2 asset vs liability (garp16-p2-8)

Hi @frmqiu I think you are using old practice exam. David has reported garp this issue and garp has updated many of the answers, I can see A as a answer in my practice exam. Try to download it again. Thank you:)!